Posted on 14 Apr 2022
China's steel exports in March fell by 34.4pc on the year to 4.945mn t, as global steel demand weakens and Chinese domestic crude steel output falls.
March steel exports were up by 20.1pc from the average monthly export volumes of the first two months of this year. China's general administration of customs released combined January and February data to smooth out the effects of the lunar new year holiday, that typically falls during that period.
Most March steel export shipments were spot orders taken in mid-December 2021 and January, when prices in China and the overseas market were on a downward trend.
The winter season in China from November to February typically sees weaker construction steel consumption. Shanghai rebar ex-warehouse prices assessed by Argus fell by 130 yuan/t ($20.42/t) to Yn4,690/t from 15 December to 31 January. Shanghai hot-rolled coil (HRC) ex-warehouse prices, which are less affected by construction steel demand, rose by Yn40/t to Yn4,940/t over the same period.
Chinese domestic steel output was also on a downward trend in winter. China's winter restriction plan for mills in north China's "2+26" cities requires an overall cut of 30pc on the year from January until mid-March. China's total crude steel output in January-February fell by 10pc on the year. Major steel mills cut export volumes as a result of falling steel output.
Chinese steel export prices lost its advantage over other major exporters in the seaborne market. Chinese rebar export prices maintained a premium of $30-40/t over Turkish rebar in December and January, attracting slim purchasing interest from major southeast Asian markets including Hong Kong and Singapore.
But Chinese steel exports in April and May are predicted to pick up as the Russia-Ukraine conflict drives up international steel prices sharply. Chinese mills also took advantage of the supply gap after sanctions were imposed on Russian supplies. Major Chinese HRC producers have sold out their flat steel export orders for May shipments in March, according to Argus' surveys.
China's steel imports dropped by 23.4pc on the year to 1.01mn t in March.
Source:Argus Media
