By Paul Ploumis 18 Sep 2015 Last updated at 06:19:58 GMT
The spiraling steel product imports from China is causing serious concerns to domestic steel and metal-mechanic sector in the Latin American region, noted ALACERO.
BRUSSELS (Scrap Monster): The unfair trade of Chinese steel products is causing severe damage to Latin American steel trade, noted the Latin American Steel Association (ALACERO). According to the Association, the rising imports from China causes concerns to steel and metal-mechanic sector.
The Latin American imports of Chinese steel had totaled 9 million mt during the entire year 2014. The imports from China had accounted for 13% of the domestic market demand. In 2013, the direct imports of Chinese steel products had totaled 5.3 million mt. The imports rose by over 70%. Also, Latin America imported around $80 billion worth of manufactured steel products from China during 2014.
The Association noted that Chinese firms are increasingly showing investment interests in local infrastructure projects. By doing so, they enter into favorable supply deals for manufactured products, often bypassing normal bidding process. The rising Chinese investments in the region along with flooding of products into domestic Latin American market through unfair trade practices has lead to significant erosion of trade, the Association stated.
The most recent trade statistics suggests that imports of Chinese finished steel by the Latin American region surged nearly 6% during initial seven-month period of the year upon comparison with the corresponding period last year. The Chinese exports totaled 56.18 million tons during Jan-Jul ‘15. The Latin American region imported 5 million tonnes out of this, thus accounting for 8.9% share of the total Chinese exports during the seven-month period. During the month of July ’15 alone, Latin America received 590,000 tons of steel from China.