China has cut imports of finished steel to a 30-year low in 2022

In 2022, China reduced the import of finished steel by 25.9% compared to 2021 – to 10.57 million tons. Thus, the import of steel products into the country fell to a minimum since 1993. He Wenbo, executive chairman of the China Iron and Steel Association (CISA), reports SteelOrbis.

Steel imports to China have decreased due to a significant increase in the cost of products against the background of high inflation and the energy crisis.

“Only the volumes of imports of cold-rolled sheet and extra-thick steel sheet have increased compared to last year, while supplies of other types of products have significantly decreased,” the report says.

In 2022, shipments of finished steel to China became more concentrated in terms of origin, with Japan, South Korea and Indonesia shipping 7.92 million tons of products, accounting for 75% of total imports. These countries increased steel supplies to China by 11.8% compared to 2021.

In addition, in 2022, China imported 6.38 million tons of steel semi-finished products, which is 53.5% less y/y. The largest decline was observed in the segment of steel billets, where the volume of deliveries fell by 80% y/y due to restrictions because of coronavirus in the first half of 2022, as well as high prices.

As GMK Center reported earlier, in 2022, China reduced production of steel by 2.2% compared to the same period in 2021 – to 1.01 billion tons. Production of iron ore for the year decreased by 1% y/y – to 967.9 million tons.

Revenues of Chinese steel companies in 2022 decreased by 91.3% compared to 2021 – to 36.55 billion yuan ($5.4 billion).