The increasing trend of steel prices in the Chinese domestic market and the appreciation of the Chinese currency exerted a negative impact on China’s steel exports in November, as stated by the China Iron and Steel Association (CISA).
In October alone, China imported 772,000 mt of finished steel, down 31.5 percent year on year, while down 13.4 percent month on month, falling to the lowest level since 2003, while it exported 5.184 million mt of finished steel, up 15.3 percent year on year, while rising by 4.0 percent month on month, according to the data issued by the Chinese customs.
The CISA stated that the weak demand from overseas markets and declining prices have negatively affected steel exports since July this year, while this situation will continue during the remainder of the current year. Moreover, the Indian government passed a bill on November 18 to lift export tariffs on iron ore and some steel products, signaling that Indian steel products may regain their share in the international market. Though the impact may not be observed in the short term, China’s steel exports may be negatively affected in the coming year.