Chinese steel exports hit three-year low in February

Shipments of steel products from China in February this year fell to their lowest level in the last three years. At the same time, exports fell sharply compared to the previous month and the corresponding period last year. The country exported 5.75 million tons of steel in February, down 22.5% from the previous month. In addition, exports in February 2017 were more than 29% lower than in the same month a year earlier.

Customs data suggests that cumulative exports for the first two months of 2017 were 13.17 million tonnes, down nearly 26% from the corresponding two-month period in 2016. Meanwhile, steel imports recorded a 17% increase in February this year. Aggregate imports during January-February 2017 increased by 17.6% compared to the previous year to 2.18 million tons.

According to analysts, the sharp drop in exports is a statement from steel producers in the EU, the US and other steel producers around the world that China was using dumping to melt surplus steel to overseas markets. The sharp rise in demand in the domestic steel market has led to an increase in production at the country's metallurgical plants. Steel production in the country in the first two months of 2017 increased by 5.8% compared to the previous year, with a total volume of 128.77 million tonnes. At the same time, high prices have led to a decline in export volumes.