China’s finished steel export volumes slashed by 31% Y-o-Y to 75.43 MnT in CY17 as compared to 108.43 MnT in CY16. Higher domestic prices resulted in better realizations in domestic market making exports less attractive. Thus reducing export volumes.
On yearly basis also nation’s finished flat export volumes reported decline by 19% to 5.67 MnT in Dec’17 as compared to 7 MnT in Dec’16.
However monthly basis, China’s steel exports increased by 6% to 5.67 MnT in Dec’17 in contrast to 5.35 MnT in Nov’17.
Yearly average domestic rebar prices in China climbed by 58% Y-o-Y to RMB 3,764/MT ex-works in CY17.
Higher prices in domestic market lessened interest of steel mills in exports. Yearly average price of HRC increased by about 36% Y-o-Y to USD 510/MT, FoB in CY17. Similarly Rebar export offers climbed by 44% Y-o-Y in CY17.
Imposed trade barriers on imports of steel goods from China was another reason behind drop in export volumes.
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