Chinese Steel Export Hits Record High at 112.4 MnT in 2015

Sluggish domestic demand and overcapacity of steel in China have led to surge in steel export at record high of over 110 MnT in 2015.

The year 2015 proved to be the worst year in a decade for the world’s steel giant China. With slack in domestic demand and inability of Chinese mills to curb their production, steel mills in China resorted to exports in order to sell their surplus.

Owing to this, China’s total steel exports are recorded at 112.4 MnT for calender year 2015 which is about 20% more than the total steel exports in year 2014.

China’s steel exports in Dec’15 are recorded at 10.66 MnT which is 4.72% higher than the same month of previous year. However in dollar terms, China’s exports value fell by 1.4% in Dec’15 as compared to Dec’14.

If sources are to be believed, anticipation of cut in China’s export tax rebate also led to hike in its export numbers in last month of 2015.

There was speculations in Chinese steel market that government is likely to cut export tax rebate on chromium containing steel and thus offshore buyers increased their buying in fear of increased costs if export tax rebate is cut.

There are number of trade suits being faced by China from various countries owing to its excessive steel dumping and looking at current pace of exports it is likely that China may land itself in more legal troubles in the coming year.

Chinese Steel Industry Performance in 2013, 2014 & 2015

*Estimated Crude Steel Production
Source: SteelMint Research