Posted on 10 Mar 2023
China is a net exporter for finished steel. Total finished steel export registered as much as 61.65 million tonnes in the first nine months of 2022, a decline of 6.5% y-o-y.
Section export increased from 1.4 million tonnes in the first 9 months of 2021 to 1.7 million tonnes in the same period of 2022. This was a continuous decline from 2017 onwards. China exported sections to various countries, especially to ASEAN-7 countries (nearly half of total export). The export to ASEAN increased 35% y-o-y to 830,736 tonnes.
Bar and wire rod export declined by double digit growth rates of 17% and 19% to 3 million tonnes and 2.4 million tonnes, respectively. South Korea was the largest market for bar export in China. However, the volume dropped by half from 914,586 tonnes to 479,837 tonnes. Second largest destination for bar export was Belgium and export to ASEAN was as much as 20% of total bar export and the volume dropped significantly in the first 9 months of 2022.
As for wire rod, the major destination for the export was to South Korea. However, the volume declined 34% y-o-y to 431,256 tonnes. Other major destinations were Thailand, Indonesia and Vietnam.
Plates export increased more than a million tonnes to 3.7 million tonnes. One third of the export was to ASEAN-7 countries. Export to South Korea doubled in volume to 633,283 tonnes.
Hot rolled coil export dropped by half a million tonnes to 9 million tonnes. Major destinations were South Korea and Turkey. The export to South Korea dropped 29% y-o-y to below a million tonnes. Export to Turkey, on the other hand, increased 37% y-o-y to 614,410 tonnes in the same period. Export to ASEAN-7 stagnated at 3.3 million tonnes.
Export of cold rolled coil also declined by a million tonnes to 5.8 million tonnes. Major destinations were Turkey, India, Italy and South Korea. Export to Turkey dropped slightly to remain at half a million tonnes in the first 9 months of 2022. Export to India expanded 6.6% y-o-y to 379,781 tonnes. Meanwhile, export to Italy jumped significantly by three folds to 348,496 tonnes. China’s cold rolled sheet export to Italy began to jump significantly in 2021 and continued to increase in 2022. This was mainly the export of both carbon CRC and stainless CRC. Export to South Korea remained significant at 500k-600k tonnes a year. However, the volume dropped dramatically, at 37% y-o-y in the first 9 months of 2022. Export to ASEAN-7 slowed down by 4.4% y-o-y to 928,073 tonnes in the same period of 2022.
Coated sheet export shrank by 2 million tonnes to 14.8 million tonnes. Two major destinations were Thailand and South Korea. Export to Thailand registered 1.4 million tonnes, a decline of 22% y-o-y. 85% of which was the export of hot dipped galvanized sheet. Export to South Korea dropped by half a million tonnes from 1.7 million tonnes in the first 9 months of 2021 to 1.1 million tonnes in the same period of 2022. Most of the coated sheet export to South Korea was hot dipped galvanized sheet. China’s coated sheet export to ASEAN-7 in total registered 4.7 million tonnes, a decline of 12% y-o-y.
China’s seamless pipes export jumped sharply, by 1.3 million tonnes to 3.5 million tonnes from January to September 2022. China exported seamless pipes to many countries. Export to major destinations registered at below 300,000 tonnes each country.
China’s welded pipes export remained stable, at 2.8 million tonnes. Major destinations were ASEAN-7 countries, especially Philippines, Myanmar and Indonesia.
China’s steel export is expected to continue to be weak given the sluggish global demand (due to high interest rates and the Ukraine war) as well as the continuing supply reforms and lockdowns that affect steel supply in China.
Note: ASEAN-7 consists of Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam
Source:SEAISI
