Steel exports of 90 million tons planned for 2023 are approaching the levels of 110 million tons in 2015 when anti-dumping measures were in effect.
The impact of Chinese steel in the Southeast Asian market is being seen, especially the 60% year-on-year increase in exports to Thailand in September 2023, while supplies to Malaysia and Vietnam have increased substantially, raising concerns in the region.
Regional trade tensions are exacerbated by the Indonesian Iron and Steel Association's ongoing advocacy to protect the industry and Vietnam's decision to consider trade measures. South American and Middle Eastern countries, for their part, are starting to adopt a more cautious attitude towards steel from China.
Even with the slowdown in China's steel production and falling prices, it is observed that oversupply is being redirected to international markets due to the weak Yuan.
Developed steel producers, especially Japan, are under pressure from this steel surge. Shipments of Chinese steel products to Japan are reportedly up 15% on an annual basis in the January-October period, while some high value-added products, especially hot-dip galvanized steel, are hovering at historic highs.
In addition to China, Türkiye's recent anti-dumping duties on hot-rolled steel are also targeting steel from India, Russia and Japan.
This rapid growth in China's steel exports indicates overcapacity in the country. The Chinese Government, through its Steel Committee, has indicated that it is committed to stepping up its own efforts to resolve this problem.
Comments
No comment yet.