Baosteel’s steel exports to exceed 5 million tons in 2023

China’s Baosteel has announced that the company’s steel exports are likely to exceed 5 million tons in 2023. This is reported by SteelOrbis.

Such figures are expected amid the expansion of foreign emerging markets, including Southeast Asia, North Africa, the Middle East, Central and South America.

In the long term, Baosteel intends to reach steel exports of 10 million tons per year.

When Baosteel, a subsidiary of China’s largest steelmaker China Baowu Steel Group, first entered the market, it decided to export 10% of its annual production and work to improve product quality, technological advances, customer service and market competitiveness.

In January-September 2023, Baosteel increased steel production by 5.5% y/y – up to 39.8 million tons. In 2023, the company’s steel production may remain at just over 50 million tons.

As GMK Center reported earlier, Chinese steel companies in January-October 2023 increased exports of steel products by 34.8% compared to the same period in 2022 – up to 74.73 million tons. In October 2023, China exported 7.94 million tons of steel, which is 1.5% less than in September. The average export price in October was $792/t, which is $22.1/t or 2.7% less month-on-month.

Also, Baosteel in mid-November announced on raising the price of hot-rolled coil (HRC) by 100 yuan/t ($13.8/t). This decision reflects growing demand and the need to replenish stocks. In addition, steel production is expected to decline next month due to maintenance shutdowns at steel mills.