According to customs data, China's finished steel exports totaled 9.278 million tons in November. This represents a decrease of 17% compared to October, but an increase of 15.9% compared to the same period last year. In the January-November period, exports reached 101.152 million tons, marking an increase of 22.6% compared to the same period last year.
Increased exports played an important role in alleviating oversupply in China's domestic market. According to data from the China Iron and Steel Association (CISA), as of November 30, finished steel stocks tracked at major mills and trading centers fell to 19.98 million tons. This is 10.6% lower than at the beginning of October and 2.6% lower than the same period last year. Falling stock levels are expected to continue to support steel prices in the domestic market until early 2025.
China's weak domestic demand had a negative impact on finished steel imports. In November, imports fell by 11.8% m-o-m and 23% y-o-y to 473,000 tons. In the January-November period, total imports fell 11.3% y-o-y to 6.194 million tons.
According to market sources, the rise in domestic steel prices following the implementation of stimulus measures in late September has reduced the global competitiveness of Chinese steel. This trend is expected to result in lower export volumes in the months ahead. Nonetheless, experts anticipate that China's robust steel export performance will persist in the near term, alleviating supply pressures in the domestic market and providing support to prices.
Comments
No comment yet.