China’s steel exports hit 9-year high in October

Shipments increased by 40.8% y/y and 10.1% m/m

China’s steel exports in October 2024 increased by 10.1% compared to the previous month – to 11.18 million tons. Shipments increased by 40.8% compared to October 2023. It is reported by Reuters.

During January-October this year, Chinese producers exported 91.89 million tons of steel (+23.3% y/y), which already exceeds the total exports of 2023 and is the highest since 2016. Thus, this year’s figure may exceed 110 million tons.

Iron ore imports to China in October 2024 decreased by 0.2% m/m and increased by 4.5% y/y – to 103.84 million tons. Over 10 months, the figure reached 1.023 billion tons, up 4.9% y/y.

“Ore demand improved last month as pig iron production surged due to a sharp improvement in steelmakers’ margins, which contributed to relatively high imports,” said Zhuo Guiqiu, an analyst at Jinrui Futures.

Average daily pig iron output in October was 4.1% higher than in September, while about two-thirds of Chinese steelmakers surveyed were operating at a profit at the end of October, compared to less than a fifth at the end of September. High imports contributed to the accumulation of port stocks of iron ore, which rose by 1.2% last month.

Steel imports to China in October amounted to 536 thousand tons (-3.2% m/m; -3.2% y/y). In January-October, imports decreased by 10.1% y/y – to 5.72 million tons.

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

In 2023, China produced 1.019 billion tons 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.