Posted on 06 Dec 2013
Alacero – Santiago, Chile. December, 4th, 2013. According to the "China-Latin America: Quarterly Report" published by Alacero –the Latin American Steel Association- during the 3rd quarter of 2013 the Latin region continued to be the second most important destination for finished steel exported by the Asiatic country, only surpassed by South Korea. Along with Vietnam, these 3 destinations account for one third of the Chinese shipments to the world.
During 3Q 2013, China exported 14.1 million tons of finished steel to the world, in line with the previous quarter (13.9 million) and 21% more than during same period of 2012. It is important to notice that while exports quarterly average reached 11.9 million tons in 2012, this figure increased to 13.6 million (+14%) in 2013.
In July/September 2013, Latin America received 10.6% of the Chinese steel exports. The volume of finished steel exports shipped to Latin America experienced in this period its all-time high of 1.5 million tons (20 thousand tons more than in 2Q 2013), growing 26.3% versus same period of 2012. The increase of the flow to the region is 5 percentage points above the growth of the Chinese exports to the word and is registered over a period of imports shrinkage (that fall 6%) and consumption stagnation in Latin America. These facts endorse the growing attraction of the region as a preferred destination for Chinese exports that are gaining share over local products and those coming from other (intra and extra regional) markets.
Traditionally, Chinese exports to Latin America concentrated on flat products. However, ince the last quarter of 2012 it has been possible to observe a sustained higher level of long products imports through the months, moving from a quarterly average of 166 thousand tons during the first nine months of 2013 to a quarterly average of 308 thousand tons during same period of 2013. Rod wire and bars –two products extensively manufactured in Latin America- stand out among the long product categories imported from China. Also, flat steel exports in July/September 2013 reached an all-time high of 1 million tons.
Three Latin American countries are among the top 25 global destinations of Chinese finished steel: Brazil (that received 435 thousand tons in 3Q 2013, 27% more y-o-y), Chile (that received 204 thousand tons, 22% less y-o-y) and Peru (181 thousand tons, +11%). It is also possible to observe that new destinations begin to emerge such as Ecuador, Cuba and Paraguay, marking perhaps the beginning of a trade diversion within the region.
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About Alacero
Alacero –Latin American Steel Association- is the organization that brings together the Steel Value Chain of Latin America to promote the values of regional integration, technological innovation, corporate responsibility and social and environmental sustainability. Founded in 1959, Alacero is formed by 45 companies of 25 countries, whose production –of about 70 million annual tons- represents 95% of the steel manufactured in Latin America. Alacero is a Special Consulting Organization to the United Nations and is recognized as International Non-Government Organization
by the Republic of Chile, host country of Alacero′s headquarters.
