China increased steel exports by 21.3% m/m in August

Low domestic sales and fears of an increase in trade conflicts in the future contributed to the hyped sales

In August 2024, China’s steel companies increased their exports of steel products by 21.3% compared to the previous month and by 14.7% compared to August 2023, to 9.5 million tonnes. Reuters reports with reference to data from the General Administration of Customs of China.

Low domestic sales and fears of rising trade conflicts in the future contributed to the rush. Steel shipments abroad in January-August 2024 increased by 20.6% y/y – to 70.58 million tonnes. This is the highest level since 2016.

China’s steel imports in August totalled 509 thousand tonnes, up 0.8% compared to July and down 20.4% compared to August 2023. In January-August, the figure decreased by 8.4% y/y – to 4.63 million tonnes.

In August, iron ore supplies to the Chinese market fell by 1.4% m/m and 4.7% y/y – to 101.4 million tonnes. The decline in imports is a result of falling steel prices and gloomy demand forecasts.

‘The panic selling of steel products caused by new steel quality requirements has had a negative impact on sentiment in the world’s largest steel market, prompting many producers to cut output. This undermined their consumption of raw materials, including iron ore. A large number of plants resorted to maintenance,’ the statement said.

At the same time, steelmakers have become more cautious about booking imports amid high port stocks and a lack of confidence in the outlook for demand during the peak construction season.

In the first 8 months of 2024, China’s iron ore imports totalled 814.95 million tonnes, up 5.2% y/y.

As GMK Center reported earlier, in 2023, China increased its exports of steel products by 36.2% compared to 2022, to 90.3 million tonnes. Steel imports to China totalled 7.64 million tonnes, down 27.6% y/y. Ore imports for the year increased by 6.6% compared to 2022 to 1.179 billion tonnes.

In 2023, China produced 1.019 billion tonnes of steel, up 0.6% from 2022. The downward trend in the country’s steel industry has stopped after two consecutive years of declining production.