Steel exports from China in December rose by 10.2%

Steel exports from China rose 10.2% month-on-month to 4.85 million tonnes in December, as Chinese mills took advantage of skyrocketing international prices driven by resurgent global steel demand.

According to preliminary customs data, exports increased 3.6% in December from a year earlier, although exports in 2020 fell 16.5% to 53.68 million tons.

Most of the steel export shipments in December were spot orders received in October and November, when prices in China and overseas markets tended to rise during the recovery from Covid-19. Hot rolled coil (HRC) prices from the Shanghai warehouse, as estimated by Argus, rose 400 yuan per tonne ($ 62 per tonne) to 4230 yuan per tonne from October 1 to November 30. But price increases in China lagged behind those of other major steel exporting countries, giving Chinese enterprises the advantage of increasing their export market share. Argus's HRC fob Tianjin increased by $ 77 /t, or 15.4%, to $ 577 /t between October 1 and November 30, while Argus's Steel HRC fob Black Sea index increased by another $ 110 per tonne, or 22.2 percent, to $ 605 per tonne. t fob.

Steel exports from China are set to rise further this month and in February, with many mills receiving satisfactory orders for rebar, wire rod and HRC from South Korea, Hong Kong, Singapore, Vietnam, Pakistan and South America in December. Most of these orders will ship during January-February, which will help boost exports in the first quarter of 2021. Leading Chinese manufacturers sold over 220,000 tonnes of wire rod in November-December, which is three times the sales in September-October, according to Argus Survey.

“The increase in exports is within the expected range as only China has steel capacity to meet the demand of global buyers for restocking,” said an exporter from northern China.

Steel imports to China fell 25.9% month-on-month to 1.38 million tonnes in December and 7.3% in December.

Steel imports to China in 2020 rose 64.4% to 20.23 million from a year earlier.