China’s steel billets import remained largely stable in Q1CY22 (January-March, 2022). Import volumes stood at 1.97 million tonnes (mnt) as compared to 1.98 mnt in Q1CY21, according to recent data released by China’s Customs department.
Oman, leading exporter
Oman emerged as the largest exporter of steel billets to China at 0.49 mnt in Q1CY22. China’s import volumes from Oman witnessed a whopping increase of 96% y-o-y as against 0.25 mnt in Q1CY21.
Russia occupied the second position among the top importers’ list in the quarter under review with 0.47 mnt followed by Iran with 0.28 mnt. Imports of steel billets from Russia rose sharply by 114% while those from Iran fell by 28%, y-o-y.
Why have imports remained stable?
Steel production curbs, limited demand for semi-finished steel products, and preference for domestic billets amidst cost competitiveness kept the country’s import bookings stable, SteelMint understands.
Billets import rise in March 2022
Imports of the material into China stood at 0.71 mnt in March 2022, a sharp rise of 58% m-o-m as against 0.45 mnt in February 2022.
Considering m-o-m, Oman was the largest exporter of steel billets in March, with 0.28 mnt followed by Russia and Iran with 0.17 mnt and 0.12 mnt, respectively.
Price trends
SteelMint’s assessment of China’s imported billets (150*150mm, 3SP) prices rose to $659/t CFR in Q1CY22 from $636/t CFR levels in Q4CY21.
Chinese billets imports outlook bearish
China’s imports of semi-finished steel are expected to be on the lower side owing to weak domestic demand and recent lockdown restrictions in some regions due to a surge in Covid-19 cases.
On the contrary, Chinese mills have turned active in billets exports since mid-March on better price realizations.
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