He Wenbo, executive president of the China Iron and Steel Association (CISA), said on September 26 at an energy conservation and emissions reduction forum held in Beijing that China’s steel imports will decrease amid the gradual recovery of overseas markets and the reduced price difference between overseas and domestic steel products, while China’s steel exports will recover.
China’s steel exports will reach 55 million mt in the current year, down 14.45 percent compared to 64.29 million mt in 2019, which will be lower than the 18.6 percent year-on-year drop in exports to 36.557 million mt in the January-August period this year, reflecting expectations of a rebound in export shipments by the end of the current year, the CISA official said.
Mr. He said the effective control of the Covid-19 pandemic in China contributed to the rapid recovery in economic development, which boosted demand for steel, which pushed steel output up to historically high levels in 2020. Meanwhile, China became a net steel importer and faced declining exports amid better demand in the Chinese domestic market and the price gap between overseas and local steel. At the same time, Chinese steel enterprises’ profitability has been less than in previous years amid surging raw material prices, though loose monetary conditions in China have contributed to improved financial conditions for companies.