Due to the global economic recovery, China's steel exports have again started to indicate a strong performance. In the first 10 months of the current year, China's finished steel exports totaled 36.8 million mt, up 99.8 percent compared to the corresponding period of 2009 - according to the Chinese customs authorities.
Although China's steel exports have surged, the product mix still focuses on low value-added construction steel varieties, lacking the desired volumes of high-end products. The main export destinations for Chinese steel are India, Vietnam and neighboring countries.
Meanwhile, the growth rate of China's domestic finished steel output has indicated successive monthly decelerations since April this year. In October, domestic finished steel output only registered 4.1 percent growth year on year. In the first 10 months of this year, the total volume of finished steel imports arriving in China reached just 13,630,000 mt.
Cai Jin, chairman of China's Federation of Logistics and Purchasing, commented that, due to inflation and rising costs, the profit margins of domestic steel enterprises look likely to shrink further. He said it is expected that demand in the domestic steel market may increase by 10-12 percent next year, with output up by 10 percent - both on year-on-year basis.