China has become the world’s largest steel exporter after the country’s exports were recorded a 112.6 MnT for the year 2015.
However with the start of 2016, Chinese steel exports declined by 8.1% from 10.6 MnT in Dec’15 to 9.74 MnT in Jan’16. And if Y-o-Y comparison is made, China’s steel exports plunged by 5.43% from 10.3 MnT in Jan’15 to 9.74 MnT in Jan’16.
Chinese steel producers have increased their export offer prices for most steel products in Jan’16 as compared to previous month. This is because Chinese mills’ strategy to lower down prices in order to drive out competition from the international market didn’t help much. In fact it resulted in major losses across the industry.
Over the last twelve months, export offer prices steadily decreased by 42% for flat and 33% for long steel products.
Steel mills there are now focusing more on controlling overcapacity by either by production cut or plant closure. As reported China plans to cut crude steel production capacity by 100 to 150 million tons in next five years. Also Chinese government is targeting to generate more consumption driven rather than investment driven demand.
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