According to the latest data released by the Chinese customs authorities, China's finished steel export volume for February stood at 1.56 million mt, down 350,000 mt or 18.3 percent month on month and down 1.55 million mt or 49.8 percent year on year. In the first two months of 2009, China exported 3.47 million mt of finished steel, with a decrease of 3.77 million mt or 52.1 percent year on year.
In February, China imported 470,000 mt of finished steel, down 570,000 mt or 54.8 percent over the previous month. Also in February, China did not export any semis for the second straight month. Semis imports in February came to 310,000 mt, up 180,000 mt or 138.5 percent over the previous month. Total imports of the subject product in the first two months of the current year reached 440,000 mt, up 410,000 mt year on year.
China's crude steel export volume in February reached 1.64 million mt, down 370,000 mt or 18.3 percent month on month; meanwhile, net exports of crude steel in February came to 180,000 mt, down 780,000 mt or 81.3 percent, compared to the previous month.
In addition, China's coke exports in February amounted to 30,000 mt, down 50,000 mt or 62.5 percent month on month and significantly down 700,000 mt or 95.9 percent year on year. Total exports of the product in question in the January-February period reached 100,000 mt, down 1.59 million mt or 94.1 percent year on year.
Iron ore imports in February registered a new high at 46.74 million mt, significantly up 14.09 million mt or 43.2 percent over the previous month and up 8.54 million mt or 22.4 percent year on year. China's total iron ore imports in the first two months reached 79.39 million mt, up 4.39 million mt or 5.9 percent year on year. The average price of imported iron ore was $80.5/mt, marking a decrease of 38.6 percent year on year.
In the fourth quarter of 2008, all market players in China had begun to entertain excessively high hopes for the future of the domestic steel market and imported a great quantity of products ranging from raw materials to finished products, with the iron ore import volume registering an historic high. This optimism consequently led to the imbalance between supply and demand, causing importers to suffer great losses.
In February, the net export volume of Chinese finished products was less than 500,000 mt, and it is expected that China will again become a net importer of finished products in March and April. In the meantime, exports of semis were down to zero while semis imports rose strongly.
Meanwhile, the continuous slump in the export volume of coke is a reflection of the depression in the international markets. Due to the sharp production cuts implemented by mills worldwide, the demand for coke from the international markets has been decreasing sharply.