LatAm Imports of Chinese Steel Declined 10% in Jan-Nov ‘17

SEATTLE (Scrap Monster): The Latin American region’s imports of steel products from China declined sharply by 10% during the first eleven months of 2017. This is in accordance with the most recent trade statistics published by the Latin American Steel Association (ALACERO).

The total imports of Chinese steel by the Latin American region totaled 6.3 million tons (Mt) in Jan –Nov ‘17. Out of this, 5.6 Mt were finished steel and the balance 686,000 tons were steel-derived products. The accumulated steel receipts during the first eleven months of 2017 have declined by 10% when compared with the imports during the corresponding period in 2016. The region had imported 7.0 Mt of steel from China during Jan-Nov’16.

The flow of Chinese steel products to the entire world countries contracted by 32% from 98.6 Mt in Jan-Nov ’16 to 67.4 Mt in the first eleven months of 2017. Out of this, 61.7 Mt were finished steel comprising of long steel, flat steel and seamless pipes, whereas the balance 5.7 Mt were steel-derivatives products. Latin American region accounted for nearly 9.4% share of total Chinese exports across the world, as compared with the 7.1% share in Jan-Nov ’16. The region continued to remain as the third preferred destination of Chinese steel exports after South Korea and Vietnam.

The primary importer of Chinese steel in the region during Jan-Nov ’17 was Central America with 1.3 Mt, representing almost one-fifth of the total regional imports. The second largest regional importer of steel from China was Chile. The imports by Chile totaled 1.2 Mt, accounting for 19% of the total imports by the Latin American region. In third place was Peru with 869,000 tons.

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Flat products constituted 68% of the total imports of finished steel and steel-derivative products from China. The Latin American imports of flat products totaled 4.3 Mt during the first eleven months of 2017. Long steel imports totaled 1.1 Mt in Jan-Nov ’17, accounting for 18% of the total steel imports by the region. The imports of seamless pipes totaled 218,000 tons. Meantime, imports of steel-derivative products totaled 686,000 tons, representing 11% of total Chinese steel imports by the Latin American region.

Among countries in the region, Ecuador recorded the sharpest jump in steel import volumes during Jan-Nov ’17. The imports by the country surged higher by 22% year-on-year, followed by Dominican Republic (+20%) and Chile (+5%). The countries which have reduced their volume of steel imports when matched with Jan-Nov ’16 were Venezuela (-55%), Cuba (-51%) and Central America (-26%).

The Latin American region imported 463,000 tons of steel from China during the month of November alone. This comprises of 415,000 tons finished steel and 48,000 tons steel-derived products. The monthly imports increased sharply by 23% over the previous month. However, year-on-year, the imports dropped sharply by 37%.