For the first time since May 2010, major Japanese EAF-based producer Tokyo Steel has restarted to export steel products to China in late July, owing to rising demand in consequence of increasing infrastructure projects in the country, according to a report from state-run news agency Nikkei.
It is stated that the products the company exported to China, were mostly general-purpose materials which can be used in the construction projects such as roads and houses. The company will also supply 100,000 mt products to China in September.
In July, China’s steel imports were higher than June and tripled year on year to 2.61 million mt in July this year, while its exports declined by 25 percent to 4.18 million mt compared to the same month of the last year. The China increased its supply by nine percent year on year to a record 93.36 million mt in July but this move was not enough to meet increasing demand.
The increase in demand from China is attributed to the government’s economic stimulus measures and the market sources expects that other Japanese steelmakers, such as Nippon Steel and JFE, will gain advantage from rising exports to China.