EXPORT 73 PERCENT OF ITS INCREASED STEEL OUTPUT THIS YEAR – MEPS INTERNATIONAL
MEPS (International) Ltd. has made an
upward revision to its previous prediction for total exports of all finished
steel products in 2014. The final figure will be a new record high of, at least,
80 million tonnes, and represent the fifth consecutive year of rising sales to
the global market.
Total reported crude steel output is expected to rise from 783.5 million tonnes
in 2013 to 810 million tonnes this year. This would translate into 24 million
tonnes of extra supply of finished steel products for sale by the steelmakers in
2014. Just 27 percent (6.5 million tonnes of the increased production of steel)
is likely to find its way on to the domestic market this year.
With China’s apparent consumption of finished steel, in 2014, expected to be
approximately 740 million tonnes, the extra local mill supply will represent
less than 1 percent of the total market.
It is clear that, by concentrating their sales efforts on exports, the
steelmakers have eased some of the pressure which has been developing on the
domestic market from oversupply. This exercise has not been a complete success
because weakening demand has pushed average selling values down by almost RMB200
per tonne (5 percent) since the start of the year.
At the same time, the competitively priced exports from China have contributed
to a reduction in domestic prices in many other parts of the world.
China Steel Review - July Edition
Also See: www.worldsteelnews.com