China will continue to increase exports of rolled steel – Baosteel

Chinese steelmaker Baosteel expects exports of rolled products from the country to continue to grow amid declining demand for steel in the domestic market. SteelOrbis informs about it.

At the same time, the company believes that the process of increasing the export of steel products will be gradual and slow, and will also depend on the balance between the domestic and foreign markets during a certain period.

According to the General Administration of Customs of China (GACC), in January-May 2023, the country increased the export of rolled products by 40.9% compared to the same period in 2022 – up to 36.37 million tons. In May, the export of steel products increased by 5.37% m/m and 7.68% y/y – up to 8.35 million tons.

As GMK Center reported earlier, in 5 months of 2023 the production of steel products increased by 3.2% compared to January-May 2022 – up to 557 million tons. In May, the output of steel products decreased by 1.3% y/y and 1.2% m/m – to 118.47 million tons.

Chinese steelmakers cut steel and rolled steel production in May compared to April to balance supply and demand in a volatile market and to support prices, which have been falling since March. At the beginning of June, the Chinese steel market revived, and product prices began to rise.

Also, weather conditions in China can adjust demand on steel and iron ore in the short term, as unfavorable conditions have slowed down work at a number of construction sites.