Latin America's trade deficit with China increased by 21 percent in 2015, mainly due to the decline of Latin American exports of raw materials and the growth of imports of steel products from China, according to Alacero, the Latin American steel association. In 2015, the trade deficit between Latin America and China totaled $31 billion.
In 2015, China's total steel exports to Latin America amounted to 9.4 million mt, including finished steel (long steel, flat steel and seamless pipes) and steel-derivative products (wire products and welded tubes), down just one percent year on year. The main export destinations in Latin America were Central America, Chile and Brazil.
On the other hand, Latin America exported to China only 15,140 mt of finished steel and steel-derivative products, decreasing by 65 percent compared to 2014.
Raw materials trade between China and Latin America showed a surplus for the latter in 2015. However, this surplus is declining every year and not sufficient to offset the deficit in finished steel and indirect trade products. Especially during the second half of 2015, this situation deteriorated even more due to the falling prices of oil and other commodities.