The export of China’s four major steel products all decreased in June on both a year-on-year and month-on-month basis due to less competitive prices, Fastmarkets understands.
***China’s major steel exports
Flat steel: 2.20 million tonnes, down by 31.1% year on year, down by 10.6% from May, China Customs data shows.
Steel bar: 400,000 tonnes, down by 42.3% year on year and down 29% month on month
Angles and sections: 180,000 tonnes, down by 38.2% year on year and down 10% month on month
Steel wire rod: 160,000 tonnes, down by 7.8% year on year and down 5.9% month on month
The recovery in China’s domestic demand since the Covid-19 lockdown measures ended in March as well as unattractive overseas prices contributed to the decline in hot-rolled coil exports.
China’s demand for HRC increased gradually over June while domestic industry recovered, so steel mills became less active in shipping HRC to other countries.
For instance, automotive output hit 2.33 million units in June, up by 22.5% year on year and up by 6.3% month on month, China Association of Automobile Manufacturers data showed.
The stronger demand for material pushed up HRC prices in China’s domestic market, sources said.
Fastmarkets’ assessment for steel hot-rolled coil domestic, ex-whs Eastern China was at 3,950-3,970 yuan ($563-566) per tonne on July 30, up by 780-800 yuan per tonne from this year’s low of 3,150-3,190 yuan per tonne on April 2.
China’s export prices then surpassed those of other flat steel suppliers, making it harder to conclude deals overseas.
Fastmakets’ steel hot-rolled coil index export, fob main port China averaged $۴۰۷٫۲۶ per tonne over April 1 to May 15, when most of the June deals were concluded.
While Fastmarkets’ assessment for steel hot-rolled coil (commodity) export, fob main port India averaged $380 per tonne between April 1 and May 15.
Among the flat steel products, China exported 379,261 tonnes of hot-rolled coil (HS code: 72253000) in June, down by 45.4% from 695,205 tonnes in June 2019 and down by 9.7% from May, data shows.
***Top five importers of Chinese HRC
Vietnam: 114,197 tonnes, down by 56.5% year on year and up by 39.6% month on month
Saudi Arabia: 82,069 tonnes, up by 23.6% year on year and up by 61.3% month on month
South Korea: 57,246 tonnes, down by 56.7% year on year and down by 32.1% month on month
Pakistan: 17,855 tonnes, down by 27.8% year on year, down by 44.3% month on month
Sudan: 14,900 tonnes, zero imports in June 2019, up by 250% month on month
***Chinese mills prefer domestic business to exports
Steel rebar (HS code 72283090) accounted for 188,906 tonnes of Chinese long steel exports in June, down by 31.2% from 274,543 tonnes one year earlier but also down by 50.8% month on month from May, data shows.
“China’s domestic rebar demand is good enough to consume local mills’ production, so most steel mills don’t have an urgent need to export,” a source at a northern China-based mill said.
Additionally, steel mills in China were offering rebar at a much higher level than suppliers in other regions.
Fastmarkets’ steel reinforcing bar (rebar) index export, fob China main port averaged $۴۴۰٫۷۴ per tonne during April 1 to May 15 while Fastmarkets’ assessment of steel rebar export, fob Black Sea, CIS averaged $۳۸۰ per tonne over the same period.
***Top five importers of China-origin rebar
South Korea: 56,084 tonnes, down by 22.7% year on year, up by 4.3% month on month
Chile: 17,060 tonnes, up by 400% year on year and up by 19.4% month on month
Hong Kong: 15,086 tonnes, up by 470-fold year on year, down by 88.1% month on month
Vietnam: 9,551 tonnes, down by 52.9% year on year, down by 21.7% month on month
Spain: 7,728 tonnes, up by 333% year on year and up by 26.6% month on month
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