Following the hefty tarrifs imposed on major steel exporters by the United states government, China, the world’s largest maker, consumer and exporter of steel, are seeking new exports destinations in Africa and South America.
Reuters reports that Washington last week had imposed hefty tariffs on major steel exporters to the United States – Canada, Mexico and the European Union – prompting retaliatory measures.
The global tariffs Washington kicked off in March were mainly aimed at curbing Chinese steel imports, which U.S. steelmakers also believe are being routed through other countries before landing in the United States.
While China’s steel exports hit an eight-month high in April, shipments for the first four months of the year dropped by 20 percent, although falling only 2.5 percent in value.
Reuters also reports that Shipments to China’s top markets, including Vietnam and South Korea, have dropped by double digits since last year, reflecting stiffer competition from other suppliers like Russia, gene the need to exploit other business destinations.
According to a sales manager at Hebei Huayang Pipeline Co, a Chinese exporter of steel pipes, Steven Yue, “The Southeast Asian market is getting crowded. More and more people are seeking to find new markets, especially in South American and African countries. We plan to work harder to develop the South American and African market from the second half of this year.”
South America and Africa accounted for a combined 8 percent of China’s steel exports last year, and shipments to some nations there have surged this year. Southeast Asia accounted for a quarter of China’s exports last year, but were down 45 percent from the year before, and slipped by a third in the first quarter of 2018, according to data tracked by MEPS.
Exports to Nigeria, Africa’s biggest economy and the continent’s top buyer of Chinese steel, rose 15 percent in the first quarter, and shipments to Algeria, the fourth-largest economy, nearly tripled. In South America, Chinese shipments to Brazil jumped 40 percent and climbed almost tenfold to Bolivia.
Compared to Asia, there are fewer nations in Africa and South America with anti-dumping duties and safeguard measures against Chinese steel products, including Brazil, Colombia, Chile and South Africa, based on World Trade Organization data.
However, there are concerns that as Chinese exporters venture deeper into the new markets, they could clash with home-grown suppliers.
South African company, ArcelorMittal, which supplies nearly all of its steel output to African markets, said the increased competition in global steel markets has been driven primarily by capacity expansion in China.
“The bigger threat for South African industry right now is the import of finished goods, made predominantly of steel, into African markets,” the company said.
“The risk that South Africa could revert to simply exporting raw materials, without local beneficiation, and importing Chinese-manufactured products is very real”.

Source: https://www.makeitglobal.biz/china-steel-makers-seeks-buyers-nigeria-african-markets/

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