Alacero, the Latin American steel association, has reported that in the first five months of this year finished steel imports from China to Latin America increased by 81 percent year on year to 3.4 million metric tons. Latin America, which accounts for five percent of global finished steel use, received 11 percent of global exports of finished steel from China in the given period, which rose 39 percent year on year to 30.5 million metric tons. In May, Latin America's finished steel imports from China hit a year-to-date peak volume of 858,122 metric tons, up 90 percent year on year.
In the first five months of this year, South Korea remained as the main destinations for Chinese finished steel exports. However, the gap between South Korea and Latin America has been decreasing. Alacero stated that, if this trend continues, Latin America may become the leading export destination for Chinese finished steel.
In the given period, Brazil was the main destination for the Chinese finished steel with 887,315 metric tons, up 138 percent year on year. Brazil was followed by Chile and Central America, receiving 506,152 metric tons and 411,872 metric tons, up 84 percent and 93 percent year on year, respectively. The other markets that increased their imports from China during the given period were Paraguay (up 273 percent), Mexico (up 164 percent), Argentina (up 157 percent) and Colombia (up 155 percent).
During the first five months of the current year, flat steel was the most important export product from China to Latin America, totaling 2.2 million tons and representing 65 percent of the total finished steel export volume, including 821,324 metric tons of sheets and other alloy steel coils, 484,158 metric tons of cold rolled coils and 42,539 metric tons of hot galvanized steel, representing 37 percent, 22 percent and 19 percent of total finished steel imports from China, respectively. In the given period, the volume of Chinese long product exports to the region amounted to 914,893 tons, including 519,408 metric tons of wire rod and 309,089 metric tons of bars.