Source: steelguru- 13 Aug 2007
According to latest Chinese customs data, China exported 5.94 million tonnes of steel products in July 2007 up by 66% YoY or down by 420,000 tonnes from June 2007. While accumulative export volume through July 2007 came to 39.7 million tonnes up by 92.2% YoY.
Based on the previous curbs and their execution time, the market had predicted July and August 2007 as a transitional period to view the anticipated efficacy and it's widely held the export volume could drop considerably this period. In this case, some analysts said that July's huge export close to 6 million tonnes is out of inertia of previous prosperity and believe that export would come down in August 2007.
Mr Jia Liangqun chief analyst at Mysteel said that such export vigor is beyond expectation and possibly push the government to bring forth new restrictive policy.
Mr Jia said that "In fact, the market has somewhat changed in July but such a huge export can show strong immunity of the market to macro control. But given July figure, it's easy to imagine August may not come lower as the environment is generally better in later period. Even if the export declines in August, it is soon to bounce back." He added that the high perched export figure against a series of curbing policies could reflect very strong exporting momentum due both to external demand and internal zeal.
Mr Jia further added that "The Chinese government will take some time to observe, while July's figure should arouse wide concern from the market and may close watch following progress. We can not exclude the possibility that it may study new curb policy."