Nippon Steel reduces exports to China
Largest Japanese steel producer Nippon Steel is planning to cut its steel exports into
China in the third quarter of the year. The company will reduce the exports by 15-20%, compared with the previous quarter covering the months of April, May and June.
By taking such decision, Nippon Steel is willing to avoid the Chinese inventory levels to rise to soon, resulting in depressed steel prices in the short term, as if acted cautiously, steel demand from
China is foreseen to grow in a medium term. Furthermore, with the effects of the SARS disease, Chinese local
production could also slow down, leading to higher demand for steel imports. While no Chinese customers have yet asked Nippon Steel to postpone deliveries, Nippon Steel will reduce exports as a preventive measure.