China's steel exports increased by 21.8% in January-July

China's steel exports surged by 21.8% y-o-y, reaching 61.23 million tons in the first seven months of this year, according to data released by the General Administration of Customs (GACC) on August 7.

Only in July, steel exports increased by 7.1% from the previous year, totaling 7.83 million tons. These shipments mainly fulfilled orders placed in May. During that period, Chinese steel products were competitively priced in international markets, allowing steel mills to secure overseas trade opportunities.

For instance, as of May 31, the export price of SS400 3.00mm hot-rolled coil from Tianjin port in North China was assessed at USD 540 per ton FOB, which was USD 20 per ton lower than offers from Japan on the same day. Additionally, higher crude steel production and sluggish domestic steel consumption at the time prompted steelmakers to focus on exports to manage their stockpiles.

In May, some Chinese steel mills resumed operations or increased production as their profitability improved with rising finished steel prices. China's crude steel output for the month reached 92.9 million tons, a 2.7% increase from the previous year, according to the National Bureau of Statistics.

In the same seven-month period, China's steel imports declined by 6.7% year-on-year, totaling 4.12 million tons, according to GACC data.