Posted on 08 Mar 2023
China's finished steel exports totaled 12.19 million tonnes over January-February, jumping by 49% on year, according to the latest statistics from the country's General Administration of Customs (GACC) on March 7.
China began to release combined trade data for January-February in 2020 to factor out disruptions to trade caused by the Chinese New Year holiday, which either falls in January or in February each year, Mysteel Global noted.
Although China's January-February steel export total showed an impressive year-on-year increase, this was mainly due to the low base in 2022 when the country exported just 8.23 million tonnes of finished steel, a Beijing-based market source commented.
During the same period last year, manufacturing activity globally was under great pressure from the COVID pandemic, inflation, and geopolitical conflicts, which caused steel demand worldwide to cool significantly. This also made it difficult for Chinese steel exports to gain any strong upward momentum, Mysteel Global noted.
China's steel shipments over January-February this year were mainly to fulfill orders signed back in late November and December last year, the source noted.
After China had relaxed the COVID prevention and containment measures last December, sentiment in the domestic steel market enjoyed a strong boost. However, the recovery rate in the home steel market was slower than expected, resulting in Chinese steel mills turning to exports, the source explained.
From the second half of November to the end of December last year, the average export price of SS400 4.75mm hot rolled coil under Mysteel's assessment was $563.4/tonne FOB, which gave Chinese exporters a price advantage in overseas steel markets.
Elsewhere, for example, on December 15 leading Vietnamese steel mill Formosa Ha Tinh lifted its domestic HRC delivery price (dollar equivalent) by $50/t to $592/t CIF for February 2023 sales, as reported.
Regarding steel imports, China imported 1.23 million tonnes of steel products during January-February, plunging by 44.2% on year, according to the GACC's statistics.
Source:Mysteel Global
