Huge losses due to falling export prices of steel forces Chinese steel makers to restrict their exports.
Chinese steel exports in Oct’15 registered a fall of 20% against Sep’15. The same is recorded at 11.27 and 9.03 MnT in September and October respectively.
Sluggish domestic demand and no production cut by Chinese steel mills resulted in oversupply and fall in steel prices.
In order to deal with this oversupply, China exported steel at much lower rate which was blamed as dumping by many countries. Also at record low export prices Chinese steel mills have incurred huge losses.
As a result, the exports retreated sharply which caused cooling down of exports in following period. It is also reported that Chinese mills are now shifting back their focus on domestic market.
However, China’s steel exports registered an increase of 5.6% Y-o-Y basis. It is anticipated that China’s total steel exports are likely to touch 100 MnT by the year end.
In the first ten months of 2105, steel exports of China were recorded at 92.1 MnT which is about 24% higher than the corresponding period of previous year.
But if import figures are anaylsed, country’s imports fell by about 12% Y-o-Y basis as the same were recorded at 10.7 MnT from Jan’15-Oct’15.
Leave a Reply