In 2013, amid slowing economic growth and sluggish demand in China, economies overseas witnessed a gradual recovery. Under such circumstances, China's stainless steel imports declined, while its exports continued to increase.
Stainless steel imports decline for first time five years in 2013
China stainless steel imports declined for the first time in nearly five years in 2013, falling to 796,500 mt with a decrease of 7,500 mt compared to 2012. Stainless steel coils/plate still hold the dominant place, occupying 59.16 percent of total imports, followed by bars and rods and narrow strip products. In addition, apart from the growth of coil and tube imports, imports of narrow strip and bars and rods declined from the previous year, especially for stainless steel scrap, with imports declining from 82,000 mt in 2012 to 22,900 mt in 2013, down over 70 percent. Meanwhile, coil imports increased by about 65 percent, mainly attributed to the domestic supply shortage in August and September.
China's stainless steel exports were relatively stable in 2013. Besides a slight drop in February because of the Spring Festival holiday, monthly export volumes mainly fluctuated in the range of 200,000 mt and 247,000 mt. April saw a peak of 247,000 mt. China's stainless steel exports increased compared to the previous year. Coils accounted for 72.2 percent of the total, tubes for 15.38 percent, followed by bars and rods and narrow strip. Stainless coil exports soared by 63.7 percent year on year.
Imports and exports in 2014 to follow trend of 2013
According to the International Monetary Fund (IMF), the US and the EU economic recovery outlook is promising in 2014, and US economic growth is expected to reach three percent, indicating a boost in stainless steel demand to some extent. At the same time, China's economic growth will maintained at 7-7.5 percent, seeing no great improvement over 2013. Therefore, China's stainless steel demand will be on the weak side.
All in all, China's stainless steel imports and exports in 2014 will follow the trend of 2013. The import volume will remain at 800,000-1 million mt, while exports will maintain their upward trend. China's stainless steel exports in 2014 are expected to be in the range of 2.7-3 million mt.
Source: www.steelhome.cn/en, China steel information centre and industry database