Latin America imported 5.5 million mt of steel products from China in the first nine months of 2017, down 4% from the same period last year, according to data released Tuesday by regional steel industry association Alacero.
"This reduction, in part, is due to the fact that China is consuming more steel and has better domestic prices," Alacero said in a statement.
"The volume received by the region from China corresponds to a value of $3.34 billion, equivalent to an average price of $613 per ton, 7% lower than the rest of the world," Alacero said.
According to the steel association, several countries in the region face significantly lower import prices than the rest of the world, as is the case of Central America (with an average price of $540/mt, 18% below the average for the rest of the world), Peru ($549/mt and 17% lower), Colombia ($556/mt, 16% lower) and Chile ($587/mt, 11% lower).
During the first three quarters, the main destinations for Chinese steel in the region were Central America with 1.1 million mt (17% less than Jan-Sept 2016), Chile with 997,000 mt (up 9%), Peru with 741,000 mt (down 2%) and Brazil with 706,000 mt (up 13%).
Latin America's flat steel products imports from China in the period reached 3.7 million mt, representing 68% of China's total steel exports to the region, up 30% year on year.
Of that total, alloyed sheet and coils made up 1.1 million mt, followed by hot dip galvanized sheet at 911,000 mt.
Chinese flat steel imports to the region were an average price 9% below than for the rest of the world, $607/mt.
However, its value has increased 25% compared to Jan/Sept 2016, while the price faced by the rest of the world increased 33% in the same period.
Long steel products exports to Latin America made up 18% of the total, reaching 978,000 mt in the period, of which 520,000 mt was wire rod and 364,000 mt was rebar.
The average price was $499 per ton, 1% lower than the one observed for the rest of the world and 44% higher year on year.
Seamless tubes accounted for 3% of total imports with 189,000 mt in volume, 22% down year on year. The average price faced by Latin America was $892 per ton, 16% lower than for the rest of the world.
End-user products represented 11% of imports at 606,000 mt, with welded tubes comprising 496,000 mt and wire 110,000 mt.
The average price of steel-derivatives products in those months was $738 per ton, 16% lower than observed for the rest of the world and 17% more than level recorded in Jan-Sept 2016.
