Alacero - Exports of Chinese steel to the world – which includes rolled products (long, flat and seamless tubes), and derived steels (wire and welded pipes) – decreased 10% regarding the same period of 2017, in a total amount of 60.9 million tons (Mt). Of these, 55.4 Mt correspond to rolled products and 5.5 thousand tons to derived products.

Latin America represented 11% of the total of Steel exports, increasing its participation by two points compared to Jan-Nov 2017, becoming the main destination of the Chinese Steel exports. In this way, South Korea was displaced to second place (6.5 million tons (Mt), 39% less than last year), while the third destination is Vietnam (6.4 Mt, 11% less than in 2017).

In November 2018, China shipped 730 thousand tons of steel to Latin America, of which 672 thousand t corresponded to rolled steel and 58 thousand t to derivative steel. This total is 26% higher than that registered in December and 58% higher than November 2017.

So far this year, the region brought in 6.6 million tons of Chinese steel, of which 6 million tons corresponds to rolled steel and 615 thousand tons to derivative steel. This total is 5% higher than the 6.3 million tons (5.7 million tons of laminates and 686 thousand tons of derivative steel) registered in January-November 2017.

The most alarming of these figures is the significant growth of shipments to the region registered since June. In the period June-November 2018, China’s exports to the rest of the world contracted 5% with respect to 2017, however in the case of Latin America, in the same period the region imported a total of 3.9 Mt of Chinese steel, 860 thousand t more than in 2017, which represents an increase of 28%.

“It is an alarming figure that legitimizes actions taken by Latin American governments to protect local industry and face the excessive increase in Chinese imports, which mostly enter unfair trade conditions. “Said Francisco Leal, General Director of Alacero.

In the period of Jan-Nov 2018, Latin America received 615 thousand tons from China, being also the main destination worldwide for these products, 11% of the total. The region is followed by the Philippines (463 thousand tons, 9% of the total) and Burna (242 thousand tons, 4% of the total).

Imports of steel from China by destinations

Among the Latin American countries, Chile was the main destination for the Chinese steel, between laminates and derivatives, during January and November 2018, receiving 21% of the total of the region, or 1.4 million tons. The Central American region remained in the second place with 1.2 million tons (17%); Peru, with 977 thousand tons (14%), Brazil with 902 thousand tons (13%) and Colombia with 728 thousand tons (11%), completing the five most outstanding ones.

In these eleven months, the countries that increased their total imports of Chinese steel versus Jan-Nov of 2017 were Colombia (29%), Brazil (15%), and Chile (13%). On the other hand, those that have seen the most decrease in their total steel imports from China in percentage terms versus Jan-Nov 2017 were Venezuela (-87%) and Cuba (-53%).

Imports of steel from China by products

71% of the total steel products, between laminates and derivatives, imported by Latin America from China during January-November 2018 were the flat products, reaching 4.7 million tons. Among these, they stood out for their volume:

• sheets and coils of other alloy steels (1.4 million tons, 30% of flat steels imported from China);

• Hot Dipped Galvanized (1.2 million tons, 25%)

• Cold coils (700 thousand tons, 15%).

China exported 1.1 million tons of long steel to Latin America, representing 16% of shipments, mainly concentrated in wire rod (542 thousand tons, 50% of long steel) and bars (415 thousand tons, 39%).

The seamless tubes represented 4% of the total imports of Chinese steel, totaling 241 thousand tons. On the other hand, derived products represented 9% of the total imports of Chinese steel that entered the region with a volume of 615 thousand tons, in which 488 thousand tons were welded pipes and 127 thousand tons of wire.

Source: Alacero