Posted on 08 Dec 2021
China's November steel exports in October fell by 0.8pc from a year earlier and by 3pc from October, customs data show.
Most November steel export shipments were spot orders taken in September and early October after China tightened polices to limit exports, ahead of its export window reopening in November.
China cancelled value-added tax rebates from 1 August for exports of cold-rolled coil, hot-dipped galvanised, steel coil and sheets, electro-galvanised steel coils and sheet, silicon steel and rail steel. China also instructed mills to flatten full-year export growth, although total steel exports in 2021 are on track to exceed last year's volumes. January-November steel exports rose by 26.7pc from a year earlier to 62mn t on robust post-Covid-19 steel demand in overseas markets.
Power shortages in China tightened its steel supplies in September, driving up its steel prices to stall producers' export interest. The Argus Shanghai ex-warehouse prices for rebar rose by 770 yuan/t, or 14.9pc, to Yn5,950/t from 1 September to 11 October, near the 2021 high of Yn6,050/t in May. The Argus rebar fob Zhangjiagang index rose by $39/t, or 4.9pc, to $842/t over the same period.
Steel mills showed little interest in accepting export orders for November and December shipments during this period. But Chinese domestic steel prices started to fall quickly from late October from a sharp slowdown in construction steel demand on tighter credit policies. The Argus Shanghai ex-warehouse prices for rebar fell by Yn1,020/t, or 17.8pc, to Yn4,720/t from 19 October to 30 November.
Chinese mills and trading firms regained export interest with competitive offers. A east China mill sold over 60,000t of hot-rolled coil (HRC) in early November for January shipment after being absent from the export market for some time. North China mills also reported increased export trade for HRC and wire rod in the same period with most export bookings concentrated for January delivery, according to an Argus survey.
China's November steel imports rose by 25.7pc against October to 1.42mn t. China imported 13.27mn t steel during January-November, down by 29.6pc from a year earlier.
Source:Argus
