According to the Chinese Customs Authority, during the first semester of 2015, Latin America received 4.4 million tons of finished steel from China at a value of US$ 2,568 million. This implies an average price per ton of US$ 583. During the same period, China shipped 47.5 million tons of finished steel to the rest of the world (ex-Latam) for US$ 26,794 million. This implies an average price per ton of US$ 562.

During the first six months of 2015, the volume of finished steel arriving from China to the region increased by 10% vs Jan/Jun 2014 and recorded an average price per ton 4% higher than the rest of the world.

Even so, many Latin American destinations faced import prices significantly lower than the rest of the world.

Central America registered an average price per ton of US$ 465 (17% lower than the r-o-w average); Peru, US$504 (10% lower); Dominican Republic, US$ 474 (16% lower) and Colombia, US$ 523 (7% lower).

It shows that since the beginning of 2014 till now, shipments of finished Steel from China to Latin American have been growing continuously and above the world average. During the period, average export prices from China decreased similarly for both destinations (with a cumulative drop deeper than 30%).

Specifically, in Apr/Jun 2015 (2nd quarter), average export prices from China to Latin America reached US$ 537 per ton, 21% lower than Apr/Jun 2014. The deepest price drops appeared in Venezuela (-62%), Argentina (-28%), Colombia (-26%) and Peru (-24%).

Flat products to Latin America

During the first semester of 2015, flat products concentrated 59.8% of the finished Steel exports from China to Latin America reaching 2.6 million tons (1% less than Jan/Jun 2014).These products arrived at an average price 5% below the r-o-w average.

Since 1Sem2014, the price of flat products imported from China decreased 9%, while in the rest of the world this drop reached 22%.

Brazil and Chile –the two most important flat steel importers of the region- received 532 thousand and 473 thousand tons from China respectively, registering average prices 7% and 9% below the r-o-w. As compared to the 1Sem2014, average price of these imports fell 13% in Brazil and 10% in Chile.

The lowest import prices for flat products appeared in the Dominican Republic (average price of US$ 487, 22% below r-o-w), Peru (US$ 529, 13% below) and Colombia (US$ 545, 13% below).

Only Argentina and Venezuela received flat products from China at an average Price significantly higher than the rest of the world. However, volume received was insignificant.

Between 1Q2013 and 2Q2015, the volume of flat products sent from China to Latin America grew 128%. Meanwhile, it expanded 87% to the rest of the world. Also, during this period, average price drop 22% for the shipments to Latin America and 29% for those sent to the r-o-w.

In terms of volume received during 1Sem2015, the flat productsthat it is worth highlighting are: sheets and coils of other alloy steels (1 million tons) and hot galvanized steel (577 thousand tons). The shipments of these products increased 6% and 4% respectively vs 1Sem2014.

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, chromeplate sheets, hot dip galvanized sheet etc.) and seamless tubes.

Central America: Considers Guatemala, Belize, Honduras, El Salvador, Nicaragua, Costa Rica and Panama.

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