Alacero – Santiago, Chile, March 03rd, 2014. In 2013, the Latin American steel value chain –that includes raw materials, finished steel and steel containing manufactured goods- trade deficit with China reached USD 19.7 billion, a marked increase of 81% vs 2011 but in line with 2012´s deficit. (See Table)
These figures are part of “China-Latin America Foreign Trade Yearbook: 2011-2013” published last week by
Alacero, the Latin American Steel Association.
TABLE:
LATIN AMERICA-ChINA TRADE BALANCE IN AMERICAN DOLLARS
2011 2012 2013
|
Raw materials |
30,405,758,459 | 26,358,512,912 | 25,337,568,485 | ||||
| Finished steel | – 3,328,996,577 | -3,636,130,719 | – 3,891,442,822 | ||||
| Chapter 73 | – 4,072,162,855 | -4,681,232,677 | – 4,432,459,741 | ||||
| Indirect steel trade | – 37,931,625,189 | -42,454,225,087 | -41,117,587,346 | ||||
|
Total value chain |
– 10,854,863,307 | -19,731,842,894 | -19,671,461,683 |
Note: The total does not include chapter 73 trade balance because its products are already included either in finished Steel or in indirect steel trade
Source: GTIS/WTA – China Customs – Alacero
Chinese exports of finished steel to Latin America reached the record high of 5.3 million tons in 2013, 17% more than in 2012. During the same period, the region exported to China just 42 thousand tons of these products. Even when regional exports figures are markedly lower than imports, regional outflows to China increased 54% vs 2012.
In 2013 indirect trade products deficit decreased slightly, in dollar terms. Meanwhile, it increased in volu- me terms. Possibly, this is due to the fact that China, during the last year, was able to reduce its prices in a more marked way than years before.
Indirect trade products exports from China to Latin America reached 6.5 million tons of contained steel in
2013, growing just 1% vs 2012. Chinese imports from the region accounted for only 127 thousand tons of contained steel, a 39% increase vs 2012.
Latin America still displays trade surplus with China in the raw materials market. However, this surplus is not able to offset the Latin American deficit in the finished and indirect trade products markets. Moreover, an analysis of the trade flows -in dollar terms- shows that raw materials surplus has been decreasing over the last years.
In volume terms, in 2013 China exported just 885 thousand tons of raw materials to Latin America and it imported 191 million tons from the region (2% less than 2012). Even when volume remains high, raw ma- terial prices have been decreasing, confirming some fears about the end of the “commodities´ boom”
“China-Latin America Foreign Trade Yearbook: 2011-2013” includes all the figures of the regional steel value chain by country (raw materials, finished steel, manufactured goods, indirect trade goods) and is available for purchase at www.alacero.org. Alacero members may download the Yearbook for free at Alacero´s Extranet.
Glossary
Raw material: Refer to those materials involved in the steelmaking process They include iron ore, coal, coke, coating and refractory materials, nickel, zinc, tin, manganese and electrodes.
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, prepainted, stainless steel, chrome-plate sheets, hot dip galvanized sheet etc.) and seamless tubes.
Manufactured steel products: Also known as Chapter 73 (customs code HS). These include higher added value, more elaborated steel products.
Indirect steel trade: Include those manufactured goods with significant steel content. For example: metallic furniture, automobiles, mechanical products, etc.
About Alacero
Alacero –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 and social and environmental sustainability. Founded in 1959, Alacero is formed by 46 companies of 25 countries, whose pro- duction –of about 70 million annual tons- represents 95% of the steel manufactured in Latin America. Alacero is a Special Consulting Organization to the United Nations and is recognized as International Non-Government Organiza- tion by the Republic of Chile, host country of Alacero´s headquarters.