As per China Iron and Steel Association (CISA), China’s crude steel output registered an increase of 2.84% in early October thus fueling concern of falling steel prices due to demand-supply mismatch in the economy. CISA has reported that China’s daily crude steel output touched 1.68 MnT in early October.
While the country’s crude steel production dropped by 3%, its consumption fell by 4.7% Y-oY basis indicating that Chinese government had hardly taken measures to control production.
Chinese steel mills have resorted to export in huge quantities in order to clear their steel inventories. As reported China’s exports jumped by 27% to 83.11 MnT Y-oY basis.
In Sep’15, China’s steel exports increased by 15.49% against Aug’15 and was recorded at 11.26 MnT.
However, as per SteelMint analysis, India’s share in Chinese total steel exports from Jan’15 to Sep’15 stands only at 3.88%.
This shows that China’s steel prices remains independent of economic measures taken by Indian government to protect steel industry from cheap Chinese imports.
| Months | China’s Total Exports | China’s Exports to India |
| Qty in MnT | Qty in MnT | |
| Jan’15 | 10.3 | 0.48 |
| Feb’15 | 7.79 | 0.25 |
| Mar’15 | 7.71 | 0.20 |
| Apr’15 | 8.56 | 0.31 |
| May’15 | 9.23 | 0.35 |
| Jun’15 | 8.91 | 0.36 |
| Jul’15 | 9.75 | 0.32 |
| Aug’15 | 9.75 | 0.33 |
| Sep’15 | 11.26 | 0.63 |
Source: SteelMint Research
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