Latin America: Steel imports from China decreases 33% while the

Press release
@redAlacero
Alacero
ASOCIACIÓN
LATINOAMERIC ANA
DEL ACER O
N°2016_12 | Chinese exports (price)
Latin America: Steel imports from China decreases 33% while
the average price fell 32% during Jan/Mar 2016
Latin American steel imports from China (January/March 2016):
• 1.8 million tons received
• Volume drops 33% vs Jan/Mar 2015
• Average price per ton falls 32%
Alacero, Santiago, May 02nd, 2016. During the first quarter of the year, Latin America imported 1.8 million tons of steel
from China, -which 1.6 million tons were finished steel and 193 thousand tons of steel-derivatives products-,
decreasing 33% versus 1°Q 2015.
In the same months, China shipped to the rest of the world (ex-Latin America) 25.4 million tons (24.1 million
tons of finished steel and 1.3 million tons of steel-derivatives products).
Price: Chinese exports to the world and to the region
The volume send to the region reached US$ 778 million, equivalent to an average price of US$ 436 per ton, 6%
higher than the rest of the world. On the other hand, Chinese steel shipped to the rest of the world (ex-Latin
America) reach US$ 10,448, resulting in an average price of US$ 411 per ton.
Finished Steel: Average price of Chinese
exports to Latin America, Jan/mar 2016
1,200
$ 991
1,000
$ 757
800
Benjamín 2944, 5º Piso Las Condes
755 0032 Santiago Chile
www.alacero.org
$ 380
Dominican
Republic
Source: Alacero based on GTA/Chinese Customs data
200
$ 400
$ 374
Ecuador
In this period, the average price of Chinese exports to Latina America decreased 37%, while the volume send to the
rest of the world fell 46%.
$ 341
Figure 02 shows the movement in the volume of Chinese
steel (finished + derivatives) received by Latin America and
the rest of the world, since the beginning of 2014 to 1 Q
2016.
World whithout
Latam = $411
Peru
$ 373
Colombia
$ 415
$ 507
400
$ 558
600
US$ / Tons
Venezuela
Chile
Central
AMerica
Brazil
Argentina
Latin
America
0
Mexico
The Figure 01 shows that the most affected countries are:
Central America (average price of US$ 341, 17% below
r-o-w average), Colombia (average price of US$ 373, 9%
below r-o-w average), Ecuador (US$ 374, 9% below r-o-w
average), Dominican Republic (US$ 380, 7% below r-o-w
average) and Peru (US$ 400, 2% below r-o-w average).
Graph 01
$ 436
Several destinations in the region are facing imports prices
significantly lower than the ones seeing in the rest of the
world.
L AT I N A M E R I C A N
STEEL
ASSOCIATION
@redAlacero
Alacero
ASOCIACIÓN
LATINOAMERIC ANA
DEL ACER O
Volume (tons) and price per ton (US$/ton) – Variations vs 1Q 2014
Latin America - Tons
Latin America - US$/Tons
World without Latam - Tons
World without Latam - US$/Tons
100%
80%
Tons to rest of the world: +62%
60%
40%
Tons to Latin America: -13%
20%
0%
Decrease to
Latin America: - 37%
1T ‘14 =
The volume of flat products send from China to the region
were observed at a price 5% higher than the rest of the
world, yet its value has decreased 27% over Jan/Mar 2015,
while for the rest of world the fall plunge to 34%.
-20% base 0
Chile, Central America and Colombia, the three largest importers of flat steel from China received 175 thousand, 143
thousand and 90 thousand tons respectively. In Chile, the
average prices was 6% lower than r-o-w average. In the case
of Central America, average price was 3% lower. While,
Colombia registered an average price 12% lower than the
r-o-w.
Source: Alacero based on GTA/Chinese Customs data
1º
2014
2º
2014
3º
2014
4º
2014
1º
2015
2º
2015
3º
2015
4º
2015
1º
2016
Graph 03
FLAT STEEL: Average Price of Chinese Exports to
Latin America, JAnuary/march 2016
1,400
$ 1,219
1,200
$ 974
1,000
$ 405
$ 380
$ 377
Chile
Colombia
Ecuador
$ 418
Argentina
200
$ 481
$ 455
400
World without Latam = $ 433
$ 443
600
$ 396
800
Latin
America
Venezuela
Dominican
Republic
Central
America
0
Brazil
During Jan/Mar 2016, hot galvanized steel (217 thousand
tons) and steel sheets and other alloy steel coils (208 thousand tons) were the most significant exports from China to
the region, showing a drop in its export volume of 32% and
an increase of 63% over the 1°Q 2015, respectively.
Decrease to rest of the world: -46%
-60%
US$ / Tons
Low prices particularly affected Ecuador (average price
of US$ 377, 13% below r-o-w), Colombia (US$ 380, 12%
below) and Peru (US$ 396, 8% below). Only Argentina and
Venezuela received flat products from China at a higher
price than the rest of the world (see Figure 03).
-40%
Peru
During the first three months of 2016, flat products concentrated 45% of the steel (finished + derivate) exports
from China to Latin America, with 801 thousand tons (33%
less than in Jan/Mar 2015).
FINISHED STEEL: EVOLUTION OF CHINESE EXPORTS
TO LATIN AMERICA AND R-O-W
$ 599
Flat products to Latin America
Graph 02
Mexico
In Jan/Mar 2016, the average price of Chinese steel (finished + derivate) exports to Latin America was US$ 436 per
ton, a decrease of 32% vs 1Q-2015. The sharpest falls were
recorded in Ecuador (-40%), Colombia (-37%), Central
America (-33%) and Chile (-32%), at values of US$ 374,
US$ 373, US$ 341 and US$ 415 per ton, respectively.
Source: Alacero based on GTA/Chinese Customs data
Long products and seamless tubes to Latin America
During the first quarter of 2016, exports of long products from China to Latin America reached 695 thousand
tons, 39% of total steel (finished + derivate) received from that country.
Average price was US$ 321 per ton, 9% higher than the one observed for the rest of the world and 42% lower
than r-o-w registered in the 1Q 2015 (US$ 555 per ton).
Benjamín 2944, 5º Piso Las Condes
755 0032 Santiago Chile
www.alacero.org
L AT I N A M E R I C A N
STEEL
ASSOCIATION
@redAlacero
Alacero
ASOCIACIÓN
LATINOAMERIC ANA
DEL ACER O
Central America, the largest importer of Chinese long steel
in the region (212 thousand tons), registered an average
price of US$ 266 per ton, 9% lower than r-o-w and 37%
lower than in the 1Q 2015 (US$ 420 per ton).
The largest volume of imports in the period was register for
bars (407 thousand tons) and wire rod (232 thousand tons)
that showed 25% and 35% growths versus Jan/Mar 2015,
respectively.
In Jan/Mar 2016, seamless pipes accounted for 5.3% of total
steel (finished + derivate) shipments from China to the region, a volume of 95 thousand tons (26% drop y-o-y). The
average price face by Latin America was US$ 751 per ton,
29% lower than for the rest of the world (see Table 01).
Glossary
chart 01
Main regional destinations:
Average import price per ton (US$)
january/march 2016
Flats
Longs
Seamless
pipes
without Latam
432
293
1,056
Latin America
455
321
751
Central America
418
266
564
Argentina
974
736
1,634
Brazil
481
402
1,819
Chile
405
368
626
Colombia
380
306
489
Ecuador
377
291
700
Mexico
599
365
1,131
396
301
597
1,219
640
718
World
Peru
Finished steel: Refers to steel included in one of these 3
groups: Long products (e.g.: reinforcing bars, bars, wire rod,
light sections, heavy sections, rails), flat steel (e.g.: sheets and
coils, coated sheets, pre-painted, stainless steel, chrome-plate
sheets, hot dip galvanized sheet etc.) and seamless tubes.
(US$/ton)
Desteny
Venezuela
Source: Alacero based on GTA/Chinese Customs data
Steel- derivatives products: Refers to the products that come from finished steel (welded tubes being the most significant item).
Central America: Considers Guatemala, Belize, Honduras, El Salvador, Nicaragua, Costa Rica and Panama.
Ton: A unit of weight or volume of sea cargo, equal to a metric ton (1,000 kg).
About Alacero
Alacero –the Latin American Steel Association– is the organization that brings together the Steel Value Chain of Latin
America to promote the values of regional integration, technological innovation, corporate responsibility, excellence in
human resources, safe working environments, and social and environmental sustainability. Founded in 1959, Alacero
is formed by 49 companies in 24 countries, whose production –of about 70 million annual tons– represents 95% of the
steel manufactured in the region. Alacero is a Special Consulting Organization to the United Nations and is recognized
as International Non-Government Organization by the Republic of Chile, host country of Alacero´s headquarters.
_
Benjamín 2944, 5º Piso Las Condes
755 0032 Santiago Chile
www.alacero.org
_
L AT I N A M E R I C A N
STEEL
ASSOCIATION