It is expected Venezuela and China agreement could help Venezuela situation in 2017

It is well known that the Venezuela status is becoming worse and worse, due to the oil and gas price keeps going in a low level in the last few years. Venezuela situation in 2017 is going into a freeze point. People in Venezuela are facing the pressure from different sides, food, poor, safety, and violence. Before this agreement, China already loan Venezuela $50 billion, it has been extended several time again. Now this behavior from China government may be not understand by most of China people, but it is hoped that this behavior will provide little bright and help to the innocent people in Venezuela.

Background: Venezuela want more cooperation with China

Venezuela, the country that rely on oil and gas exports, has turned to China for help several times. Venezuela and China have a good relation since long time ago.
In the current oil crisis, Venezuela has been unable to return the $50 billion debts to China. China decided to extend the deadline of $ 50 billion loan. In order to achieve better cooperation plan and get out trouble, Venezuela finance minister Marco was coming to China several time to seek more emergency financing.

Latin-America import 7.4 million mt at 2014, increased a lot than 2013.

According the data from Latin-American Steel Association, from January to November of 2014, China have exported steel products over 7,400,000.00 mt to Latin-American, this have increased 56% compared 4,800,000.00 mt in 2013.

Slowly increases at 2015 and 2016 on importing China steel in Latin-America.

In Jan/Nov 2015, China exported finished steel at 92.8 million mt, and 7.6 million tons were exported to Latin America. It grew 2% compared with the same period from Jan/Nov 2014.

In Jan/October 2016, with the same period of 2015, Latin American Steel Association claimed China steel exported increased by 1%. The figure included steel profiles, steel plates and coils, seamless line pipes and also steel wire products reinforced steel and welded pipes. Till then, Latin America is the third place that export steel, first is South Korea 12.1 million mt and Vietnam 10 million mt.

Main destination countries for Chinese steel products in Latin-America.

The main destinations for the China finished steel products and steel pipes, profiles from January to October 2016 were Central America 1.6 million mt. Chile 1 million tons, Peru 850 thousand tons. For Central America, the countries that increase the import steel from China is Peru increased 4%, Costa Rica increased 130%, other countries increased 13%. On the other hand, some Latin America countries reduced imports for Chinese steel products. For Jan/Oct 2015 to Jan/Oct 2016, Mexico and Venezuela reduced 54%. Argentina reduced 47%. Ecuador and Brazil reduced 36%, which respectively shares 3%, 7%, 1%, 11% and 5%. 49% of the Chinese steel products imported by Latin America for Jan/Oct 2016 were flat steel products. Flat steel products includes steel sheets, steel plates, steel coils, steel strips, total about 3.1 million mt.

According to the recent data published by the World Steel Association, the crude steel production by South American countries increased during the month of November this year. The total monthly output climbed higher by 2.7% to 3.754 Million tonnes.
The total crude steel production by Argentina during November was 461,000 tonnes, down 1.7% than the November 2013 production of 469,000 tonnes. Brazil produced 2.773 Million tonnes of crude steel, higher by 2.4% when compared to 2.708 Million tonnes production achieved during November 2013. The Chilean November crude steel production saw sharp dip of 11.2% from 107,000 tonnes in November ‘13 to 95,000 tonnes in November this year. The total crude steel production by Colombia plunged 22.8% to 95,000 tonnes in November this year.
Ecuador’s crude steel production was up year-on-year. The crude steel output by Ecuador was 60,000 tonnes in November this year, 27.2% higher from 47,000 tonnes during November last year. Paraguay’s crude steel output remained flat during the month.
The crude steel output by Peru went higher by 11.8% year-on-year from 89,000 tonnes to 100,000 tonnes. The crude steel output of Uruguay remained almost unchanged at 10,000 tonnes. Venezuelan production soared higher by 60.2% year-on-year from 97,000 tonnes to 155,000 tonnes.
The following table provides cumulative crude steel output for the first eleven months in 2014 in comparison with those during same period in 2013.