Chinese exports challenge Ukraine in southeast Asia

Chinese exports challenge Ukraine in southeast Asia

The slowing economic growth during the last months accompanied with the stabilized export price levels, led to reduction in the steel production volumes in Ukraine. Beginning from September, demand is expected to strengthen, and so the prices in the international market. The Ukrainian market is expected to stabilize too, even an improvement in the foreign trade is seen as a possibility. However, industry insiders believe that; the Ukrainian steel producers export market to southeast Asia that account for 30% of their production, is under threat of a Chinese exporters overwhelming in this region for a long run. The reduction in the Ukrainian steel production is related to the increased production capacity in China, some experts state. No matter how better the other market and economic conditions are, the transformation of China from an importer to an exporter will continue influencing Ukrainian producers, supplying 30% of their production to the market of southeastern Asia. China is inevitably focused on the closest markets at the first place for exporting its production, and the southeast Asia is one of the main neighbouring markets, which has been supplied by Ukraine thus far. Now with the almost equal qualitative characteristics, the freight advantage the Chinese producers have, will constitute a great threat for the steel exporters in Ukraine.