According to Bloomberg, the bulk of this export surge consists of steel billets, which are now taking center stage in global trade.
Analysts say that weak domestic demand, particularly in the construction and real estate sectors, is the main driver behind this export growth. Semi-finished steel exports, which previously accounted for only a small portion of China’s total steel shipments, reached 1.5 million tons in July alone, representing 14% of total monthly exports.
Countries like Vietnam and South Korea have implemented anti-dumping measures targeting finished products; however, these measures do not cover semi-finished products, causing trade to shift in this direction.
Destination Routes: Southeast Asia and the Middle East
Exports have largely flowed to Southeast Asia and the Middle East. Indonesia was the largest buyer with 1.14 million tons, followed by the Philippines with just under 1 million tons. Turkey, Italy, and Saudi Arabia were also among the top destinations.
This shift in trade flows is notable at a time when many governments have focused only on restricting finished steel products.
Trade Talks with the U.S. Begin
While semi-finished steel exports continue to rise, China is sending a high-level delegation to Washington. China’s Vice Commerce Minister and trade envoy Li Chenggang will meet with U.S. Trade Representative Jamieson Greer and Treasury officials. Li is also scheduled to meet with U.S. business leaders.
Jeremy Chan, senior analyst at Eurasia Group, said, “The focus of the Li-Greer meeting should be on trade and tariffs, not technology,” and described China sending the delegation as “a positive sign for progress in trade relations.”
Trump also confirmed the possibility of a meeting with Xi Jinping, and these talks will be critical in determining whether China will limit exports or continue pushing steel abroad to support its economy.
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