Brief analysis on Chinese H-beam exports

SteelOrbis Shanghai Maanshan Steel and Laiwu Steel commenced the production on small-sized H-beam production line and large-sized H-beam respectively since the second half year of 2005, which resulted in the sharp increase of about 1.2 million metric tons in Chinese annual production of H-beam. However, the domestic demand did not see a corresponding increase. Chinese H-beam producers began to strengthen their exports in order to alleviate the pressure on domestic sales. In 2005, Chinese H-beam exports totaled 442,600 mt, up 80.5 percent compared with 2004. From January to May 2006, H-beam exports amounted to 441,150 mt, up 198.5 percent year on year. The major export destination for H-beam is South Korea, which imported 238,200 mt in 2005 and imported 313,800 mt from January to May this year. Korea Iron and Steel Association attached much importance to this situation, worrying that this may harm their H-beam market and producers. They tried to communicate with China Iron and Steel Association for several times, requiring the government to pay attention to this issue and control it. They also warned that they may announce some urgent limitation measures or initiate anti-dumping investigation. In order to reduce the exports to South Korea, various mills began to explore new markets. Maanshan Steel began to prepare for the application for certificate of Japanese Standard. Laiwu Steel got the JIS certificate in April 2006, qualified for exports to Japanese market. In June 2006, Maanshan Steel resumed the production of H-beam based on American Standard. Until early July, Maanshan Steel has produced 12,000 mt H-beam for exports to North American market.