Posted on 31 Aug 2022
For July, China's total export volume of flat steel stood at 4.3 million tonnes, down 12.06% on month, according to the data released by the country's General Administration of Customs.
Last month, China exported 1.04 million tonnes of hot-rolled coil (HRC), plunging by 32% on month, while the export volume of medium plate edged up by 2.2% on month to 694,500 tonnes.
The decline in flat steel exports was within the market's expectation after the volume had increased rapidly over May-June, mainly because Chinese exporters received plenty of orders during March and April, a Shanghai-based analyst shared.
Besides, those orders that had been postponed delivering due to restrictions induced by COVID outbreaks across China earlier have been dispatched since May, he added.
Nevertheless, China's flat steel exports may decline in the coming months, as the outlook of global economy had been dampened by recession concerns, high inflation and tightening monetary policy.
Besides, overseas buyers have been reluctant to buy HRC produced in China, as the prices are less competitive compared with those in other countries, according to the analyst.
Moreover, the mismatch between steel supply and demand worldwide caused by the Russia-Ukraine conflict has been eased, so overseas demand may return to normal, which would impact Chinese steel exports in turn, he noted.
Source:Mysteel Global
