China increased the export of steel products by 35.6% y/y in January-November

In November, Chinese steel companies shipped 3.2% more steel abroad than in October

In January-November 2023, Chinese steel companies increased their exports of steel products by 35.6% compared to the same period in 2022, to 82.66 million tons. This is evidenced by data from the China Iron and Steel Association (CISA).

In November 2023, Chinese steelmakers shipped 8 million tons of steel for export, up 3.2% compared to October. The average export price in October amounted to $810.9/t, up $18.9/t or 2.4% m/m.

Steel imports to China in January-November 2023 amounted to 6.98 million tons, which is 29.3% less compared to the same period in 2022. In November, Chinese consumers imported 614 thousand tons of steel, down 8.1% month-on-month.

The average price of steel imports in November amounted to $1628 per tonne, up 7.3% compared to October.

China’s high steel exports are driven by low prices for steel products compared to other exporting countries, as well as low domestic demand, which forces domestic producers to send their surplus products abroad.

The bulk of steel is exported to regions where there are no trade barriers, including Southeast Asia, the Middle East, South Asia, Central America, and others.

It is expected that in 2023, China will increase steel exports by 10% y/y, to more than 72 million tons. In other words, in the second half of the year, exports will gradually decline month-on-month, although they will be higher than in 2022.

As GMK Center reported earlier, China increased steel production by 1.4% y/y – to 874.7 million tons in January-October 2023. In October, Chinese steelmakers reduced steel production by 3.7% month-on-month and 1.8% y/y – to 79.09 million tons.