Bolivian imports of iron and steel have surged by 343 percent in the past 10 years, according to information released this week the country’s institute of foreign trade, IBCE.
According to the government data, the nation’s imports of iron and steel between 2005 and 2014 reached $5.5 billion and 5.2 million mt.
Since 2005, the Bolivian imports of iron and steel products have been steadily increasing both in terms of volume and value. The imports have grown from 264,306 mt in 2005, to 550,345 mt in 2010 and to 863,269 mt in 2014, the highest import volume registered so far.
From January to July this year, the South American country has imported 470,302 mt of iron and steel-related products at a value of $480 million.
In the cumulative period of January to July, Brazil was the main exporter of iron and steel-related products to Bolivia, with a 29 percent share, followed by China (28 percent), Peru (13 percent), Argentina (7 percent) and the US (3 percent). Brazil exported $139 million in products in the seven-month period, while China and Peru exported $136 million and $61 million, respectively.
Bolivia has been struggling to meet its domestic demand for steel, as it is yet to develop one of its most important projects: the Mutun steel complex.
State-run Empresa Siderúrgica del Mutún (ESM), which is developing the $405 million Mutun steel complex project, aims to meet up to 60 percent of the country’s demand for steel. ESM is expected to partner with a Chinese company, which is yet to defined.
In April this year, the Bolivian government sent an invitation to seven Chinese companies to establish a partnership for its Mutun steel project in the region of Santa Cruz. The prospective Chinese companies that could partner with Bolivia’s government in the project include Complant Mechanical, China Railway, China Aluminum International, Sinosteel Equipment, CIPMIEC–Catie Group, Capital Engineers and China CAMC.
A media report said the company expects to build a concentration plant, a pelletizing plant as well as a DRI unit, which would be all attached to a rolling mill. The rolling mill could be able to produce 150,000 mt of finished steel. EMS said a Chinese company will finance the $405 million project. Once the plant is complete, Bolivia could save up to $230 million per year, as it won’t need to import finished steel from Brazil and Peru.