- Exports rise 5.4% m-o-m, driven by stronger demand from India and Europe
- Net exports increase 44.5% m-o-m despite weaker Jan-May trade performance
SteelDaily: China’s stainless steel trade flows diverged in May 2026, with imports declining sharply due to lower arrivals from Indonesia, while exports strengthened on improved demand from India and Europe. The contrasting trend highlights shifting regional trade patterns amid changing supply dynamics and evolving import policies in key overseas markets.
According to the General Administration of Customs of China, the country’s stainless steel imports fell to approximately 91,100 tonnes (t) in May, down 46.3% month-on-month (m-o-m) and 27.1% year-on-year (y-o-y). During January-May, cumulative imports stood at 636,800 t, down 11.3% from the corresponding period last year.
In contrast, stainless steel exports increased to approximately 415,700 t in May, up 5.4% m-o-m. However, shipments remained 4.7% below May 2025 levels. Cumulative exports during January-May totalled 1.613 million tonnes (mnt), down 23.6% y-o-y.
Supported by lower imports and improved exports, China’s net stainless steel exports rose to approximately 324,600 t in May, up 44.5% from April and 4.3% higher than the same month last year. Nevertheless, cumulative net exports during the first five months declined 29.9% y-o-y to 976,100 t.
Indonesian imports contract sharply
Indonesia remained China’s largest stainless steel supplier despite a steep decline in shipments during May. Imports from Indonesia dropped to approximately 71,900 t, down 50.3% m-o-m and 27.6% y-o-y.
The decline was broad-based across product categories. Imports of stainless steel hot-rolled products fell 74.9% m-o-m to around 4,400 t, while cold-rolled imports declined 39.7% to approximately 60,400 t. Imports of stainless steel slabs fell to about 1,200 t, while billets and other semi-finished products decreased to nearly 5,800 t, both registering declines of more than 73% from April.
During January-May, imports from Indonesia totalled approximately 528,000 t, down 10.6% y-o-y. Hot-rolled imports declined 30.9% to around 59,000 t, while cold-rolled imports eased 4.5% to approximately 402,600 t.
Despite the monthly decline, Indonesia continued to dominate China’s import basket. Together with Japan and Taiwan, the three countries accounted for approximately 87% of total imports during May, while the top five suppliers including Vietnam and South Korea represented nearly 92% of total import volumes.
India and Europe drive export growth
On the export front, demand from India and Europe supported higher shipments during May. Vietnam remained China’s largest export destination at approximately 62,000 t, followed by India at 46,000 t and Turkey at 33,000 t.
Exports to India rose by around 10,000 t from April and nearly 29,000 t y-o-y, reaching their highest monthly level in about 20 months. During January-May, shipments to India increased 75.8% y-o-y to approximately 123,000 t.
The sharp increase was largely attributed to the continued extension of exemptions from India’s mandatory BIS certification requirements, enabling Chinese stainless steel producers to supply material to address domestic shortages.
European demand also improved during the month. Reduced EU safeguard quotas and higher tariffs on excess imports tightened regional stainless steel availability, resulting in longer delivery times and firmer domestic prices. These developments enhanced the competitiveness of Chinese stainless steel in international markets.
Turkey also emerged as a key destination, with buyers increasing purchases of imported stainless steel to supplement regional supply as domestic production was increasingly directed toward the European market.
Market implications
The sharp fall in Indonesian imports indicates easing dependence on imported stainless steel during May, while stronger exports to India and Europe highlight China’s ability to redirect material toward markets facing supply constraints.
Going forward, trade flows are expected to remain influenced by regulatory developments, including India’s BIS certification framework and the European Union’s safeguard measures. Changes in regional pricing, freight costs, and stainless steel demand will continue to determine China’s import and export competitiveness during the second half of 2026.
Note: This article is published as part of a content exchange agreement between SteelDaily and BigMint.
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