Chinese steel export in May remains above 5 million tonnes.
China export quantity of steel products in May was 5,230,000 tonnes up by 12.0% from the previous month of 4,670,000 tonne and also up 9.6% from the same month last year.
It increased for 3 months in a row and it was since June, 2010 that its steel export marked the level of 5 million tonnes.
Seen from the China export quantity, price increase of steel products will be very difficult in negotiations for July shipment which have been undertaken at present. Its cumulative export quantity during January through May was 22,040,000 tonnes up by 10.1%YoY. Meantime, its export quantity of ingots and semi-finished products in May was nil.
While China import quantity in May was 1,320,000 tonnes up by 16.8% from the previous month and up 3.1% from the same month last year. Cumulative import quantity during January through May was 5,850,000 tonnes down by 14.3%YoY. Import quantity of ingots and semi-finished products in May was 30,000 tonnes up 50.0% from the previous month and no change from the same month last year. Its cumulative quantity during January through May was 160,000 tonnes down by 36.0%YoY.
Under the sluggish steel market, China steel production had raised its operation rate in April and May and had continued the level of 80 million tonnes. With this increase of inventory and export had been predicted.
The steel prices in the Asian area have never risen despite of being in demand in the market but rather, prices of flat rolled steel products like hot rolled steel coils are showing a sign to go to a downward trend. Supply and demand have not been tightened due to increase of export in China and on top of it, China's offer prices are the low level and further, the Chinese mills are competing with products of Russia, Central and South America and so on.
Source - TEX Report Limited