INCREASE IN CHINESE STEEL EXPORTS – MEPS INTERNATIONAL LTD
Chinese exports of steel products
increased by 9.5 million tonnes during the first six months of this year,
compared with the same period in 2013. MEPS estimates that offshore supply
represents approximately 60 percent of the escalation of mill output in the
Foreign sales of finished rolled steel mill products climbed to 31.85 million
tonnes in the first half of this year – up from 22.3 million tonnes in 2013.
This gain in export activity was not confined to the popular importing nations.
Of China’s top thirty export destinations, twenty nine recorded increased
tonnages in 2014. The exception was Singapore with a minimal reduction of 0.4
Chinese steel is, currently, extremely price competitive in most global markets.
Over the past twelve months, material from China’s steelmakers has become cost
effective, to many customers in the West, despite long delivery lead times.
However the most popular destinations remain those in the Asian continent.
In the first half of 2013, six countries imported in excess of one million
tonnes of Chinese steel products – all of them in Asia. By comparison, in the
January to June period, this year, steel exports of more than one million tonnes
were shipped to twelve countries. These included two none Asian nations – United
States and Brazil.
It is worth remembering that the economies of a number of South East Asian
nations have built up, in recent years, a strong need for supplies of
competitively priced steel products for their development. Many factories have
been specifically set up in these countries to use local labour for assembly of
products for western multi-national corporations.
So far in 2014, we have seen a number of significant changes to the pattern of
Chinese exports over the past twelve months. Sales to Japanese customers went up
from 273,000 tonnes in the first half of last year to 762,000 tonnes in the same
period, this year. Exports to Brazil almost doubled in the same time span.
Steel supplies to the United States, in the first six months of 2014, increased
by 77 percent, year-on- year. Most of the gain was in flat products. Other
countries with significant advances, so far this year, are Pakistan, India,
Belgium, Chile and UAE. In almost every case of increased import activity, the
main driver was the competitive price.
China Steel Review - August Edition
Also See: www.worldsteelnews.com
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