China – world largest steel giant owns the highest crude steel production of 807.28 MnT in 2016 and expected to increase to 825 MnT in 2017. Out of which 87% will be served in domestic market.
China’s steel exports has witnessed the sharp decline of 14% M-o-M basis in finished steel exports as compared to Mar’17. Nation’s finished steel exports stood at 6.49 MnT in Apr’17 against 7.56 MnT in Mar’17.
However,on yearly basis, China’s finished steel exports have slumped by 28.4% in Apr’17 against previous year.In Apr’16 nation’s steel exports stood at 9.07 MnT.
During Jan-Apr’17 China’s finished steel exports stood at 27.22 MnT,down by whooping 26.2% against 36.9 MnT in the similar time-frame of previous year.
Profitable Domestic Market Leads to Fall in Export Volumes
Chinese mills focused more on domestic market as it was capturing good sales realizations in comparison to export market.
Moreover,during Apr’17, HRC export prices were in range of USD 420-425/MT,FoB basis compared to USD 480-500/MT, FoB China in Mar’17. The domestic HRC prices in Apr’17 was in range of RMB 3,190-3,220/MT equivalent to USD 462-466/MT.
Hence, flat steel prices in export market were considered lower for April shipments and profitable in domestic market.
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