Chinese steel exports grew by 0.4% y/y in January-November

According to the latest data released by the General Administration of Customs of China (GACC), steel exports from China for January-November amounted to 61.95 million tons, showing a slight increase of 0.4% year on year compared to a fall of 1.8% year on year. calculation for the first 10 months.

According to the customs service, the increase in total steel exports was driven by growth in November, when steel exports reached 5.59 million tons, up 406,000 tons or 7.8% from the previous month.

The increase from the previous month was mainly due to orders signed two months earlier, when global demand for steel recovered slightly and orders from South Korea increased.

According to Mysteel Global, a severe typhoon in early September forced several South Korean steel producers to stop production, affecting steel supplies to the country and providing trading opportunities for Chinese exporters.

Meanwhile, the value of Chinese overseas deliveries also improved slightly last month, as the depreciation of the Chinese yuan against the US dollar in November provided some support for Chinese steel exports. Exporters can lower their dollar-denominated bid prices and still generate the same amount in yuan, allowing Chinese steel to become more competitive in the international steel market.

Orders for hot-rolled coil from the Middle East, Africa and India rose slightly by mid-November, according to a leading exporter in Hangzhou.

In addition, a series of optimization policies introduced by the Chinese government in November to mitigate the impact of COVID cases significantly boosted sentiment among both import and export steel traders.

However, Chinese steel exports still face many challenges going forward as overseas demand for steel has yet to experience strong growth amid high global inflation and the ongoing conflict between Russia and Ukraine, market sources predict.

In addition, the price competitiveness of Indian steel in global markets may gradually increase and hit Chinese steel in the future after the Indian government announced the removal of additional export duties on certain steels from November 18, according to Mysteel Global.

In terms of imports, China imported 752,000 tons of steel products in November, down 20,000 tons or 2.6% from October. According to GACC statistics, in January-November, total steel imports reached 9.87 million tons, which is 3.4 million tons or 25.6% less than the same period last year.