Alashankou records robust growth in steel trade

Alashankou records robust growth in steel trade

Northwest China's largest port, Alashankou, saw a sound increase in steel trade thanks in part to stronger trade relations between China and Kazakhstan. Through the first seven months of the year, the import of steel and steel products increased 24 percent year on year to 1.84 million tons. The trade value of products passing through the port during the same period reached $592 million, up 41 percent year on year. On the other side, exports of steel and steel products amounted to 123'200 tons with a trade value of $125 million. Ferrochrome, HR/CR sheet and tinplate are the major imported products at Alashankou port. Steel pipe, wire rod and rebar are the core steel products for export. China's demand for specialty steel caused the increase in imports. In the other direction, an abundance of long products in the domestic market encouraged Chinese exporters to ship their goods to Kazakhstan and other points in Asia where demand for construction steel was high. Furthermore, China National Petroleum Corp. recently agreed to buy PetroKazakhstan Inc. for $4.18 billion - a deal that would be the largest overseas acquisition by a Chinese company. With the proposed takeover, oil pipeline construction projects between China and Kazakhstan are expected to take off, thus Alashankou will likely see a significant increase in OCTG exports in the near future.