World’s largest steel producer, China has continued its over supply in the global market by exporting 9.88 MnT steel in Mar’16, up by 23% against exports of 8.11 MnT in Feb’16.
This surge in country’s steel exports have come despite announcement by Chinese government that the exports will fall in 2016 as a part of country’s restrictive trade policy. But amid slowing economy and overcapacity, Chinese steel mills resorted to export markets in order to stay in business.
While Chinese steel exports surged by 23% in Mar’16 M-o-M basis, its exports are up by 30% if Y-o-Y comparison is done.
Meanwhile in first quarter of 2016, country exported 27.83 MnT, up by 7.78% against same quarter of previous year.
China’s domestic flat products prices in the month of March surged by about RMB 400-450/MT (USD 60-70/MT) amid bullish sentiments and positive outlook.
In order to focus more on domestic market, sellers there have subsequently raised their export offers. However global buyers are reluctant to accept such high-priced offers. Thus it remains to be seen how much steel will be exported from China in Apr’2016 amid this trade off.
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