China: Finished Steel Exports Drop 15% in July

According to the recent data released by General Administration of customs, Chinese finished steel export volumes in Jul’18 fell to 5.886 MnT , down by 15% in comparison to previous month. In Jun’18 nation’s finished steel exports volume stood at 6.944 MnT.

As per data maintained with SteelMint, monthly steel export volumes in the month of July have hit lowest since Mar’18 which stood at 5.65 MnT then.

However on yearly basis nation’s finished steel exports plunged by 15% in Jul’18 against 6.96 MnT in Jul’17

Meanwhile in first seven month of CY18 (Jan-Jul) Chinese finished steel exports stood at 41.34 MnT ,lower by 14% as compared to 47.97 MnT in same time frame of previous year.

Nation’s stringent steel capacity cuts leads to decline in finished steel export volumes-In the beginning of July month, China’s top steel-making city Tangshan in Hebei province had ordered steel mills, coke producers and utilities to deepen output curbs for six weeks this summer (till 21 Jul’18) in order to clear smog in one of the country’s most polluted areas. Also, many of the steel firms in Xuzhou city of Jiangsu province has remained closed this year due to environmental reasons.

Meanwhile imposition of USA trade tariffs on Chinese steel products on 1st June lead to bearish sentiments and depreciation of nation’s currency Yuan against USD. This results to further decline in nation’s finished steel export volumes in the month of Jul’18.

Chinese HRC export offers remained steady over dull buying-On monthly average basis Chinese HRC export offers stood at USD 594/MT in Jun’18 inched up by 1% against USD 588/MT in May’18.Thus Chinese steelmakers have kept HRC export offers firm amid dull buying from overseas buyers.

Similarly,domestic HRC prices in China in assessed around RMB 4,241/MT in Jul’18 as compared to RMB 4,271/MT in the month of Jun’18.

Nation’s finished steel imports remain largely stable in Jul’18 – As per customs data nation’s finished steel imports stood at 1.027 MnT in Jul’18 which remain unchanged to 1.02 MnT in Jun’18.

Similarly on yearly basis,nation’s flat steel imports declined by 5% to 1.027 MnT in Jul’18 against 0.98 MnT in Jul’17.