Chinese finished steel exports have come down by 14% in H1CY18 (Jan-June’18) as compared to Jan-June’17.
According to the recent data released by General Administration of customs, Chinese finished steel export volumes plunged by 14% to 35.45 MnT in H1CY18 against 41.01 MnT in first half of previous year.
Strict measures taken to curb excess steel capacity and air pollution- China was successful in eliminating steel overcapacity of 65 MnT in CY16, 50 MnT in CY17 and around 30 MnT,in till now in CY18.
Hebei province, China’s one of the major steel producing city has planned to cut steel production capacity of 10 MnT in CY18.Also Tangshan City, has extended its production cuts from 16 Mar’18 to 14 Nov’18.The mills which are closest to the city will have to halt 15% of capacity, while the remaining will be required to keep 10-15% of their capacity as idle.
As a result,Chinese steelmakers have shifted their interest to domestic sales amid capacity cuts and improved demand and have reduced their export quantities to major importing nations.
Chinese steel exports moved up in June over dull domestic demand – On monthly basis the same inch up by 1% to 6.944 MnT in Jun’18 which was 6.88 MnT in May’18.
On monthly average basis domestic HRC prices in Eastern China stood at RMB 4,271/MT in June’18 compared to RMB 4,213/MT (ex-works) in May’18. Dull domestic demand and weakening sentiments resulted in steel mills to go for exports.
Similarly if yearly comparison is made country’s finished steel exports moved up by 2% against 6.81 MnT in Jun’17.
Nation’s finished steel imports decline by 6% in H1CY18-As per customs data nation’s finished steel export decreases by 6% to 6.363 MnT in Jan-June’18 which was 6.8 MnT in Jan-June’17.However on monthly basis the same stood at 1.04 MnT , down by 8% against 1.13 MnT in May’18.
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