Steel export challenges and opportunities coexist
Date of Publication:2022-10-09

In the first five months of this year, our cumulative exports of 2204 million tons of steel, year-on-year growth of 10.1%. Under the background of the deepening European debt crisis and the slowing economic growth of emerging market countries, the situation of Chinese steel exports in the first half of the year is better than the expectation of insiders at the beginning of the year. However, not all varieties of exports are very good, the author from the point of view of the varieties of interpretation of the difference.

In the past two years, the export of rod and wire and profile grew rapidly, while the export situation of plate was weak. Along with the growth of Chinese material production capacity, foreign export has also become one of the important sales ways, since 2005 the proportion of material in export varieties has been climbing continuously, until 2010 to reach nearly 60% of the total export. In July 2010, the state reduced the export tax rebate for some steel products, among which the export tax rebate for ordinary hot rolled, pickling, medium thick plate, cold rolled narrow strip steel and other plate products was cancelled, and the export volume dropped significantly thereafter. The proportion of plate exports in 2011 and 2012 in the first April respectively decreased to 54% and 50%. From January to April this year, although the total amount of Chinese steel exports increased by 8.8% year-on-year, the export of plate products only increased by 0.8% year-on-year, far lower than other major categories. Based on the average daily export volume, the figure is 4.6 percent lower than that of 2011.

On the other hand, the export of rod and wire and corner profiles was "suddenly emerging", with a year-on-year growth rate of 30-40% in 2011 and 2012. The two categories accounted for 25% of total exports in the first four months of this year, compared with just 16% in 2010. Based on the average of the previous four months, the annual export space for rod and wire and corner sections is estimated at 12 million tons, about 3 million tons more than 2011 and 5 million tons more than 2010. Although the international market is under the shadow of the global economic slowdown, the export prospects of these two categories are still superior to other varieties.

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