China’s finished product imports down sharply in October

China’s finished product imports down sharply in October

According to the statistics released by Chinese Customs on Wednesday, November 9, China imported 1.93 million metric tons of finished products in October, down 560’000 metric tons, or 22.5 percent, compared to September. In year-on-year terms, however, the import volume of finished products increased 300’000 metric tons, or 18.4 percent. China’s monthly import volume over the seven months leading up to October was more than 2 million metric tons. October marked the first time since February that China’s import volume was lower than 2 million metric tons. Even then, February’s low import totals could be explained by the shortened month and the Chinese New Year holiday. Compared to the same period of the previous year, however, the import volume of finished products increased 300’000 metric tons, or 18.4 percent. Going in the other direction, China exported 1.34 million metric tons of finished products in October, down 20’000 metric tons, or a slight 1.5 percent, month on month. In year-on-year terms, exports were down 170’000 metric tons, or 11.2 percent. For October, China was a net importer of finished products to the tune of 590’000 metric tons. China’s ten-month cumulative import volume of finished products was 21.93 million metric tons, down 3.63 million metric tons, or 14.2 percent, year on year. Going the other way, the cumulative export volume in the first ten months was 17.15 million metric tons, up 7.01 million metric tons, or 69.1 percent, year on year. During the January-October period, China’s net import volume was 4.78 million metric tons. In October, China imported 50’000 metric tons of semi-finished products, down 64’000 metric tons compared to the previous month and the lowest level since March 1999. Export volume of semi-finished products was 160’000 metric tons, a month-on-month increase of 22’000 metric tons. This made China a net exporter of 110’000 metric tons of semi-finished products，up 86’000 metric tons month on month. The ten-month cumulative import volume of semi-finished products was 1.13 million metric tons, down 2.59 million metric tons, or 69.6 percent. Going in the other direction, the cumulative export volume in the first ten months was 6.14 million metric tons, up 2.62 million metric tons, or 74.4 percent, year on year. This means China was a net exporter of 5.01 million metric tons of semi-finished products. Calculating the amount of crude steel used based on finished product volume, China is estimated to be a net importer of about 70’000 metric tons of crude steel in the first ten months of this year. In general, China has not yet become a net exporter of iron and steel products. Under the circumstances that the domestic output increased rapidly and prices fell sharply, the import volume in the next two months is likely to further decrease. Export volume, on the other hand, might see a rapid increase. China is expected to be a net exporter of iron and steel products this year. SteelOrbis Shanghai