Posted on 14 Oct 2014
China’s exports of steel products rose to a fresh record last month, almost doubling from a year ago as steelmakers burdened by China’s slowdown boost cheap exports to make up for lost margins at home.
Chinese mills habitually use exports as a means to bolster sagging domestic sales, which has often threatened to swamp global supplies and led to trade friction with major importers such as Europe and the U.S. Chinese steel officials say they are trying to get mills to cut back on such exports.
September net exports of steel products reached 7.2 million metric tons, rising 4.5% from the last all-time high posted in May. Steel exports in the first nine months are up 39% to 65.3 million tons.
By absolute volume, exports reached 8.5 million tons, also a record. The September shipments rose 73%, nearly double the volume a year earlier.
Analysts say the U.S. remains a top destination for Chinese steel exporters, as weak manufacturing conditions and slack demand for steel spurred price cuts and exports among domestic steelmakers, according to the consulting firm Applied Value.
Cheap Chinese steel prices are boosting exports to record levels, especially to the U.S. where current domestic hot-rolled prices are comparatively $209 a ton higher, it said.
