Chinese finished steel imports into Latin America plummeted month-on-month in February, regional steel producers association Alacero tells Kallanish. There was year-on-year growth during the second month however and year-to-date values show that imports accelerated sharply compared to the first two months of 2014.

Although finished steel imports from China fell by -42% from January’s 1.1 million tons to 625,000 tons, this volume was still 6% higher than arrivals in February 2014. The on-month decline was due to Chinese New Year holidays, Alacero says.

Total Chinese finished steel exports to the world continue to grow and reached 16.4m tons in Jan-Feb 2015, 58% more than the same months of 2014. Latin America remains the second most popular destination for Chinese finished steel, behind South Korea, with 10.4% of China’s global exports or 1.7m tons having landed in the region in the first two months of 2015.

The most popular Latin American export target for China in January and February was Brazil with 271,000 tons landing, or 16% of regional flow. This was followed by Mexico with 248,000 tons (15%) and Central America with 243,000 tons (14%). Alacero defines Central America as Guatemala, Belize, Honduras, El Salvador, Nicaragua, Costa Rica and Panama, Kallanish notes.

There is a definite change in the pattern of export volumes by country destination year-on-year, Kallanish observes. In 2014 Brazil was by far the most popular destination for Chinese finished steel exports with 350,000 tons of landings in the first two months, twice the volume of second-place Chile (179,000 tons). In 2015 there are five areas, Brazil, Mexico, Central America, Chile and Peru who have all seen over 200,000 tons of Chinese steel imports y-t-d.

Flat steel represented 58% of the finished steel imported from China to Latin America during Jan-Feb 2015, reaching 991,000 tons. Sheets and coils of other alloy steel made up the biggest part of these with 409,000 tons. Long product imports were 613,000 tons in total with wire rod (215,000 tons or 41% of all longs) being the most popular type, Kallanish notes.