In October this year, China’s semi-finished steel exports totaled 1.17 million mt, down 21 percent month on month, while decreasing by 4.0 percent year on year, which was the first year-on-year decline since the beginning of the current year, according to China’s customs authorities.
In the January-October period this year, China’s semi-finished steel exports amounted to 11.9 million mt, up 157 percent year on year, 58 percentage points lower than the increase recorded in the first nine months.
The semi-finished steel price gap between China and the Black Sea narrowed, resulting in the loss of China’s competitive advantage. Turkey now requires that 25 percent of raw materials or semi-finished steel should be purchased in its local market, exerting a negative impact on the demand for imported semi-finished steel. Consequently, China’s semi-finished steel exports to Turkey declined from 240,000 mt in August to 30,000 mt in September, with no exports recorded in October.
November and December are regarded as the traditional offseason for overseas demand, which will drag down China’s semi-finished steel exports.