According to a report today from Alacero, Latin America accounted for 9.6 percent of China’s total global steel exports in 2017, increasing its participation in 2.4 percentage points versus 2017, which reached a 7.2 percent and continuing at third place as China’s preferred destination.
In 2017, Latin America received 7.0 million mt of Chinese steel products, which 6.8 million mt were finished steel and 802,000 mt were steel-derivatives products. This volume is 8 percent lower than 7.6 million mt recorded in the full-year 2016. The main destinations for Chinese steel (finished and steel-derivatives) in Latin American during 2017 were: Central America, which received 1.4 million mt (20 percent of the region); Chile, with 1.4 million mt (19.7 percent); and Peru, 962 thousand tons (13.8 percent).
During 2017, the volume of Chinese steel received by Latin America is equivalent to a value of $4.432 billion, with the average price per ton at $634/mt. This average value increased 33 percent versus the average registered in 2016 ($478/mt). Although the average price of the region increased in comparison to the previous years, the average price is 8 percent lower than the average value of the rest of the world (without Latin America), with $688/mt.
By region, average prices were: Central America (with an average price of $562/mt, 18 percent below the average for the rest of the world), Costa Rica ($568/mt and 18 percent lower), Peru ($572/mt, 17 percent lower) and Colombia ($586/mt, 15 percent less than the average for the rest of the world).
During 2017, China shipped to Latin America 4.7 million mt of flat products, concentrating 68 percent of the steel exports, 22 percent more than in 2016.
The average price of that volume was $623/mt, 9 percent lower than the rest of the world and 25 percent higher than in 2016. The corresponding price to the rest of the world (excluding Latin America) was 33 percent higher than the previous year with 8 percent.
For their part, Chile, Central America and Brazil were the three largest importers of flat steel from China in 2017, receiving 1.1 million mt, 911,000 mt, and 729,000 mt, respectively. These three destinations recorded average prices of 14 percent, 15 percent and 5 percent lower the average for the rest of the world, respectively.
In 2017, other alloyed steel sheets and coils (1.4 million mt, 10 percent less than 2016) and hot dip galvanized sheet (1.2 million mt, 16 percent higher than 2016) were the most significant exports from China to the region.
Long product exports from China to Latin America reached 1.3 million mt in 2017, 18 percent of total steel (finished and derivate) received from that country.
The average price was $530/mt, $2/mt lower than the rest of the world ($532/mt) and 56 percent higher than 2016 ($340/mt).
Central America, the largest importer of Chinese long steel in the region (311,000 mt), registered an average price of $433/mt, 19 percent lower the average price for the rest of the world, and 45 percent higher than full-year 2016 ($299/mt).
Bars (578,000 mt) fell 38 percent compared to 2016, while imports of wire rods (544,000 mt) were 62 percent lower.
in 2017, seamless pipes counted for 4 percent of total steel (finished and derivate) shipments from China to the region, a volume of 250,000 mt (20 percent drop y-o-y). The average price faced by Latin America was $956/mt, 12 percent lower than for the rest of the world ($1,092/mt).
Finally, the share of the steel-derivatives products is 11 percent of the total Chinese steel exports of to the region during 2017, with a volume of 754,000 mt (612,000 mt correspond to seamless pipes and 143,000 mt to wire). This volume was 6 percent lower than received in 2016. Latin America is the top destination for Chinese exports of these products. The average price of steel-derivatives products in the year was $772/mt, 17 percent lower than observed for the rest of the world and 42 percent below the level recorded in 2016 ($736/mt).