China’s steel exports experienced a significant increase in May, registering a 15% rise year-over-year to reach 9.63 million tonnes, despite a slight dip from April’s figures. This data was reported by the General Administration of Customs on June 7. From January to May 2024, total exports surged by 24.7% year-on-year to 44.66 million tonnes, showcasing robust growth in the steel sector.
The competitive pricing of Chinese steel was a major driver behind this surge in exports, according to industry sources. During March and April, when most of May’s export cargoes were booked, the price for steel hot-rolled coil, as calculated by Fastmarkets, averaged $535 per tonne in March and slightly decreased to $529 per tonne in April. These prices were significantly lower compared to those offered by suppliers in other regions, such as India, where the price averaged $578 per tonne in March and $560 in April.
However, the momentum in export activity has seen a decline starting May, influenced by concerns among exporters about potential government crackdowns on non-value-added-tax exports. This apprehension among traders could impact the pace of exports in the upcoming months, although the details and implications of such regulatory measures remain to be seen.
