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Latin America finished steel imports from China grow

Steel News - Published on Fri, 21 Nov 2014

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In January to September 2014, China shipped 6 million tonnes of finished steel to Latin America, 54% more than the 3,9 tonnes registered during the same period of 2013.

1. Between January to September 2014, China exported a total of 58 million tonnes of finished steel. Of that volume, 6 million tonnes arrived to Latin America.
2. The volume received by Latin America from China grew 54% as compared to the first nine months of 2013. During the same period, the flow to the world grew 10 points less (+44%).
3. The region consolidates as second destination with a 10.3% share (vs. 9.7% in January to September 2013)
4. In the context of its Annual Congress in Mexico City, at the beginning of this month, Alacero insisted on the need of Latin American governments immediate action to face a competitor that establishes its production and trade on the base of SOEs and government subsidies.

Meanwhile, total finished steel exports from China continue to grow steadily (but at a slower pace than shipments to Latin America) and reached 58 million tonnes between January to September 2014, a 44% increase YoY.

Latin America consolidates as second main destination, expanding its share of finished steel exports from China from 9.7% to 10.3% from January to September 2013 to January to Septamber 2014. The region is surpassed only by South Korea that received 9.3 million tonnes (a share of 14%) during the period.

In September 2014, Latin America received 610,787 tonnes of finished Steel from China, 15% less than August 2014 (714,609 tonnes) but 46% more than September 2013 (409,116 tonnes).

Chinese finishedsteel imports by destination;
The main Latin American destinations for Chinese finished Steel between January to September 2014 were: Brazil that received 1.5 million tonnes (25% share of the regional flow); Chile that reached 946,325 tonnes (16% share); and Central America, with 835,776 tonnes (14% share). (Graph 02).

During these nine months, the most important percentage growths of finished steel imports from China vs same period of 2013 were registered in: Argentina (+136%), Mexico (+136%), Paraguay (+123%) and Colombia (+103%). Nonetheless, Argentina and Paraguay display reduced levels of imports.

Mexican imports of finished steel continue to show a constant increase. The country received 520,782 tonnes during the first nine months of 2014 (9% share of the regional imports of Chinese steel) and consolidates as the sixth regional destination, reaching almost the same volume than Colombia.

Imports from China by products;
Flat steel represented 67% of the finished steel imported from China to Latin America during Jan/Sep 2014 and reached 4 million tons. Among flat steel, the most imported products were:
1. Other alloy steel coils and sheets (1.5 million tons, 38% of the flat steel imported from China)
2. Hot Galvanized Steel (834,464 tonnes, 21%)
3. Cold rolled coils (787,941 tonnes, 20%).

Long steel imports from China to Latin America reached 1.6 million tonnes, mostly concentrated in:
1. Rod wire (869,938 tonnes, 54% of long products imports)
2. Bars (572,129 tonnes, 36%).

Unfair trade actions;
These increasing imports from China in a context were consumption remains stable and local industry is being damaged by the dumping and subsidies practices have triggered a series of actions by Latin American producers in order to ensure that regional trade is in line with WTO regulations. In the finished steel market, currently, there are 11 complaints and requests against Chinese unfair trade practices (35% of the ongoing actions in the region). On the other hand, there are 9 measures in forcé against China.

Source – Strategic Research Institute, Steel Guru

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Posted By : admin on Fri, 21 Nov 2014
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