According to the recent data released by General Administration of customs, China, finished steel exports witnessed increase on monthly basis to 6.88 MnT in May’18, higher by 6% against 6.48 MnT a month ago.
Chinese HRC export offers on monthly average basis decreased marginally by 2% to USD 582/MT, FoB in Apr’18 against USD 593/MT,FoB in Mar’18.
On the other hand, domestic HRC prices in China in the beginning of the May stood at RMB 4,160-4180/MT (ex-works) in May’18 which increased to RMB 4,260-4,280/MT (ex-works) by month end.
Thus in the month of May higher inventory levels over moderate demand in the domestic market has pushed the Chinese steelmakers to prefer exports over competitive pricing from overseas market and increased profit margins.
However on yearly basis nation’s flat steel export volumes decline marginally by 2% in May’18 against 6.98 MnT in Apr’18.
Meanwhile in first five months of CY18 ( Jan-May) nation’s finished steel export volumes stood at 28.51 MnT, down by 17% as compared to 34.2 MnT in similar time frame of previous year.
However, China is facing more pressure in tackling overcapacity as strong prices reduced steelmakers’ willingness to cut capacity.
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