Alacero, the Latin American steel association, has reported that in the first half of this year finished steel imports from China to Latin America increased by 65 percent year on year to 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 grew 39 percent compared to the same period of 2013, reaching 36.9 million metric tons. In June alone, Latin America's finished steel imports from China totaled 647,080 metric tons, down 25 percent month on month but four percent higher compared to June 2013.
In the first half of this year, South Korea remained the leading destination for Chinese finished steel exports. However, the gap between South Korea and Latin America as destinations for Chinese steel exports had been decreasing. Alacero stated that if this trend continues, Latin America may become the number one destination for Chinese finished steel.
In the given period, Brazil was the main destination in Latin America for Chinese finished steel receiving 1.1 million metric tons, up 84 percent year on year. Brazil was followed by Chile and Central America, receiving 614,698 metric tons and 506,213 metric tons, both increasing by 81 percent year on year, respectively. Central American countries stood out as representing five percent of total Latin American total consumption and received 13 percent of the Chinese finished steel. The other markets that increased their imports from China during the given period were Paraguay (up 242 percent), Mexico (up 155 percent), Colombia (up 121 percent) and Argentina (up 120 percent).
During the first half of the current year, flat steel accounted for the leading share of finished products exported from China to Latin America, totaling 2.7 million tons and representing 67 percent of total finished steel trade between China and Latin America, including 977,844 metric tons of sheets and other alloy steel coils, 558,482 metric tons of cold rolled coils and 552,380 metric tons of hot galvanized steel, representing 37 percent, 21 percent and 21 percent of total flat steel imports respectively. In the given period, the volume of Chinese long product exports to the region amounted to 1 million metric tons, including 597,252 metric tons of wire rod and 374,520 metric tons of bars.