After enjoying boom in steel industry over past two decades, Chinese steel makers are now struggling to survive in the face of dwindling demand, falling prices, and increasing pollution.
As per CISA (China Iron & Steel Association) report, the average steel price in China dropped by 32% by the end of 2015 against previous year and the losses incurred by Chinese mills during 2015 hit record high at USD 9.85 billion.
In order to deal with overcapacity in steel sector, many Chinese mills had either opted for production suspension or plant closures. In a recent announcement made by Chinese government It is expected that China will cut its crude steel production by 100-150 MnT in coming five years.
China’s total steel exports in Jan’16 plunged by 9% against Dec’15 whereas if year-on-year comparison is made steel exports fell by 5% in Jan’16 against same month of previous year.
China’s Steel Exports
| Countries | Jan’16 | Dec’15 | M-o-M Change |
Jan’16 | Jan’15 | Y-o-Y Change |
| South Korea | 1.09 | 1.15 | -5% | 1.09 | 1.20 | -9% |
| Vietnam | 1.04 | 1.13 | -8% | 1.04 | 0.92 | 13% |
| India | 0.52 | 0.58 | -10% | 0.52 | 0.47 | 11% |
| Indonesia | 0.51 | 0.74 | -31% | 0.51 | 0.55 | -7% |
| Phillipines | 0.43 | 0.36 | 19% | 0.43 | 0.57 | -25% |
| Thailand | 0.40 | 0.40 | 0% | 0.40 | 0.34 | 18% |
| Turkey | 0.39 | 0.38 | 3% | 0.39 | 0.18 | 117% |
| Pakistan | 0.39 | 0.26 | 50% | 0.39 | 0.19 | 105% |
| SIngapore | 0.30 | 0.28 | 7% | 0.30 | 0.22 | 36% |
| Others | 4.67 | 5.38 | -13% | 4.67 | 5.66 | -17% |
| Total | 9.74 | 10.66 | -9% | 9.74 | 10.30 | -5% |
Quantity in MnT
Source: SteelMint Research
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