Posted on 22 Jun 2022
China's semi-finished steel exports and imports are expected to decline in the upcoming months, industry sources said, citing muted overseas and domestic demand.
In May, China exported 287,000 mt of semi-finished steel exports, more than doubling from 117,000 mt in April, and also well above 36,000 mt of exports made in entire 2021, according to China customs.
However, export volumes may resume downward trend in June or July, as sluggish overseas demand has led to a sharp drop in order bookings since April.
When added to finished steel, China's total steel exports in May reached 8.046 million mt, the highest since late 2016, and 52.6% higher on the year. Over January-May, China's total steel exports dropped 14.9% on the year, to 26.321 million mt.
China's steel exports were likely to stay sluggish for the rest of 2022, as overseas steel consumption contracted amid soaring global energy prices and the interest rate hikes in the US, sources said.
In May, China's semi-finished steel imports fell for the second month in a row, down 13.8% on the month and 70.8% lower on the year, to 360,000 mt, hitting the lowest since November 2019, customs data showed.
China's total imports of semi-finished and finished steel in May were down 52.2% on the year at 1.166 million mt. Over the first five months, total steel imports were down 21.6% on year to 8.279 million mt.
China's steel imports would continue to decline in the coming months, as the country's domestic market has remained under pressure due to oversupply caused by the slowdown in the property construction sector, sources said.
Source:Platts
