BEIJING (Scrap Monster): The exports of finished steel from China to Latin American countries surged during first half of 2014. The region has emerged as the second largest destination of Chinese exports. The finished steel exports from China to Latin America surged over 65% when compared with the corresponding six-month period in 2013.
The primary destinations of Chinese exports were Brazil, Mexico and Chile. The main finished steel products that made up the exports were sheets and coils. Latin America increased its share of Chinese finished steel exports from 9% in 2013 to 11% during the initial six-month period this year. The large scale urbanization happening in Latin American countries has boosted the steel demand in the region. The quantity of steel imported by the Latin American countries has grown exponentially during recent times.
The main sectors that account for the increased steel demand are infrastructure, railways and automobiles. In particular, the large scale construction and expansion works at Brazilian ports demand huge steel input. The infrastructure development projects including rail expansions are the other main steel-consuming sectors. The Latin American market has become a natural destination of Chinese steel firms.
The domestic demand for steel in China has weakened. This has also led to increased overseas shipments, trade sources noted.