Chinese steel exports in October decreased by 8.6pc from September to 4.5mn t but rose by 11.3pc on the year, according to Chinese customs data. January-October exports expanded by 29.5pc to 58mn t on the year on post-Covid demand recovery globally.
Most September steel export shipments were spot orders taken in August and early September after China tightened polices to limit exports. The Chinese government instructed mills to flatten exports in July. To further limit producers’ steel supply to overseas countries, China cancelled value-added tax rebates from 1 August for exports of cold-rolled coil, hot-dipped galvanised steel coil and sheets, electro-galvanised steel coils and sheet, silicon steel and rail steel.
Power shortages in China resulted in more production cuts across Chinese mills and boosted steel prices in August and September, dampening producers’ exporting interest. Jiangsu’s electric arc furnace mills cut output by 70pc in September to reduce energy consumption. Three major blast furnace mills in Jiangsu province cut 30pc of output in late September. Mills in Shandong province cut 350,000t of construction steel output in September and October.
The Shanghai ex-warehouse prices for rebar rose by 590 yuan/t, or 11.3pc, to Yn5,820/t from 2 August to 30 September. Mills showed little interest in accepting export orders for November and December shipment during this period. Exports in November are likely to decline from October, market participants estimate.
China’s October steel imports fell by 10.3pc from September to 1.127mn t. China imported 11.84mn t of steel in January-October, down by 30.3pc on the year.
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