Latin America: Steel containing products and finished products trade deficit versus China deepens in 2012 to reach 46 billion dollars

alaceroSantiago of Chile, March 07, 2013. This week Alacero –Latin American Steel Association- published the 7th Edition of the Yearbook China-Latin America Foreign Trade. The document reveals that steel products exports from China to the world increased 16% in 2012, while flow to Latin America grew more steadily: 27%.

During 2012, Latin America received 4.6 million tons of finished steel from China, became the second most important destination for such exports after South Korea, and moved the European Union to the third place.

In the case of steel containing products (indirect trade), Latin America experienced an increase of imports from China of 11%, while Chinese flow to the rest of the world grew just 6%.

On the other hand, China imports less and less steel and steel containing products from Latin American coun­tries.  During the last 3 years, Latin American trade deficit enlarged continuously and augmented 41% for steel containing goods and 29% for steel products, comparing 2012 versus 2010.

Several Latin American countries are constantly monitoring Chinese exports to the region and establishing le­gal measures to face unfair trade. Nevertheless, figures show that Latin America attracts Chinese steel exports above global average.

Between 2006 and 2011, trade balance of raw materials multiplied by 6 favoring Latin America. However, the slowdown of the Chinese economy in 2012 resulted in a weaker demand for raw materials that left its footprint on total trade balance.

In 2012, Latin America accumulated a surplus of 26,359 million dollars in raw materials and a deficit of 46,067 million dollars, considering steel and steel containing products altogether. So, raw materials exports value was not enough to offset steel trade balance growing deficit. This evidences the vulnerability of a model that is strongly focused on natural resources over one that promotes regional industrialization.

China- Latin America Foreign Trade Yearbook is available for purchase at Alacero members may access it for free at Alacero´s Extranet.

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 52 companies of 25 countries, whose production –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 Organization by the Republic of Chile, host country of Alacero´s headquarters.