Posted on 14 Apr 2022
China shipped 4.95 million tonnes of finished steel abroad in March, lower by 34.4% on year, though the YoY fall was due to a high basis of March last year, the latest statistics from China's General Administration of Customs released on April 13 indicate. In fact, last month's volume was higher by a healthy 36.6% from February, the data show.
Shipments in March were to fulfill the orders signed in January, when mills were more open to take export orders at the beginning of a new year, market sources noted. Whereas over late last year, some major state-owned mills were instructed to restrain their steel exports to guarantee supplies to domestic users first.
However, in January, the price competitiveness of Chinese exports compared to that of other competitors in the global steel market was low and in parallel, poor demand for Chinese steel from buyers in COVID-19-striken Southeast Asia at that time had both impacted sales. Southeast Asia is the top destination for China-origin steel exports, Mysteel Global notes.
Consequently, shipments last month declined by a notable 34.4% from March last year, though admittedly, the March 2021 volumes had been the second highest in over five years, Mysteel Global noted.
The March export result took the total finished steel export volume in this year's first quarter to 13.18 million tonnes, also down 25.5% on year, according to GACC's statistics.
Chinese steel shipments this month may improve further from March, a Shanghai-based steel analyst maintained. Moreover, exports in May are likely to reach a peak for this year, thanks to the broad price gap between China-origin products and those made abroad. Also, there is strong demand for steel in other countries to offset the temporary retreat of Russian steel from the global steel trading market, she noted.
"For May alone, shipments (of China-origin steel) may succeed 6 million tonnes – as a result of frenzied buying over late February and early March – which would probably make the May volume the highest of this year," she said.
As for imports, China imported 1 million tonnes of steel products in March, around a normal level, which took total steel imports over the first quarter to 3.2 million tonnes, down 13.4% on year, according to the latest customs data.
Source:Mysteel Global
