- Weaker demand pulls down exports by 35%
- Scrap imports surge on nickel price volatility
SteelDaily: China’s stainless steel imports stood at around 408,000 tonnes (t) in Q1CY’26, down 9.4% y-o-y, while exports fell more sharply by 35.2% to approximately 795,000 t. As a result, net exports declined by nearly 50% to around 387,000 t, reflecting weaker overseas demand and slower trade activity.
March trade improves m-o-m
In March alone, imports reached 147,000 t, up 16.9% m-o-m, while exports rose 16.2% m-o-m to 302,000 t. However, March exports were still down 55.7% y-o-y, pulling net exports lower by 54.7% compared with the same month last year.
Market participants said Chinese mills continued to face export headwinds from elevated freight costs, vessel delays linked to Middle East tensions, and softer buying interest from Europe. Exports to the Middle East reportedly fell for the third consecutive month, while EU shipments remained subdued.
Indonesia dependence rises
China’s import structure remained heavily dependent on Indonesia, which accounted for the bulk of inbound volumes. Higher slab imports from Indonesia in March also reflected Chinese mills’ preference for semi-finished feedstock amid changing cost dynamics.
Scrap imports jump sharply
Stainless steel scrap imports rose by nearly 125% y-o-y to 14,100 t in March. In Q1CY’26, scrap imports totalled around 41,800 t, up 110.4% y-o-y, indicating a stronger preference for secondary raw materials amid volatile nickel prices and melt cost optimisation.
Outlook
China’s stainless steel exports may remain under pressure in the near term amid weak global demand, export policy adjustments and freight volatility. However, Southeast Asian demand recovery and greater focus on value-added grades such as 316L and duplex stainless could offer selective support. Scrap imports are expected to stay firm as mills continue cost-efficient raw material sourcing.
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