Due to the decline in international demand and the sharp depreciation of currencies in some countries, China’s steel exports have dropped sharply. According to the Shanghai Securities Daily report today, it is even more worrying that the increase in foreign steel sales to China is further impacting the domestic market. In this connection, iron ore, coking coal, and coke in the iron and steel industry chain also have similar conditions. This is the information that the reporter learned from the fifth steel industry development strategy and steel product production and demand seminar on April 11.
The global economic crisis has led to a decline in international steel demand, which has further affected China's steel industry. According to Li Xinchuang, deputy dean of China Metallurgical Industry Planning Institute, after China's steel exports fell to 1.908 million tons in January, it further fell to 1.562 million tons in February, a year-on-year decrease of 49.6%, a year-on-year decrease of 18.1%. Since November, the monthly export volume of China's steel products has dropped to a new low.
In contrast, the import of steel has shown a growth trend. In January, China imported 870,000 tons of steel. In February, imports increased to 1.09 million tons. According to sources to be confirmed, in March, steel imports were more than in February, and China became a net steel importer.
Steel exports have played an important role in driving China's steel consumption. In 2008, China exported 59.18 million tons of steel, an average of 4.93 million tons per month.
Li Xinchuang, deputy dean of the China Metallurgical Industry Planning Institute, believes that the main reason for the decline in exports is the continued sluggish demand in the international market and the rise of trade protectionism. In addition, the sharp devaluation of exchange rates in neighboring countries has resulted in weakening the competitiveness of our products. China’s major competitors in the Middle East, such as Ukraine, Turkey, and Russia, have devaluations of 40%, 30%, and 17%.
Similar conditions are also found in raw coke used to smelt steel. China is a big exporter of coke. In the highest month, China exported 1.6 million tons of coke. However, in December last year, China exported only 220,000 tons of coke. In January this year, it exported 70,000 tons. In February, it exported 20,000 tons.
On the other hand, due to the weakness of the international steel market, countries that originally required coke now sell their coke to China, most notably Japan.
In respect of coking coal, international coking coal prices have dropped significantly due to insufficient international demand. At present, the CIF price of imported coking coal is 100-150 yuan/ton cheaper than domestic coking coal. More than 40 coking plants in China are jointly sourced for this purpose.
The same is true of iron ore. Brazilian iron ore is still oversupplying at a 30% reduction in output. Due to insufficient demand in Europe, in the first quarter, Brazil reduced its original supply to Europe by 69%, while the amount to China increased by 47%.
In 2008, China’s steel production capacity reached 600 million tons, but actual consumption was about 430 million tons. There is also a serious oversupply of coke. According to Jin Qiang, president of the China Coking Industry Association, at present, the coking plant operating rate is only 50%. One side is the impact of imports, while the other is the sharp drop in exports. The pressure on the steel industry chain has soared.
Taking steel as an example, Cai Jin, deputy chairman of the China Federation of Logistics and Purchasing, revealed that the PMI index of the China Purchasing Managers Index shows that many industries in China's manufacturing industry, such as transportation equipment and general machinery PMI, have all increased, but steel has not recovered. In addition, the comprehensive price of steel has continuously hit a new low this round since March.
Data show that in January and February of this year, China's steel production reached 91.8 million tons, an increase of 3.1% over the same period of last year.
The global economic crisis has led to a decline in international steel demand, which has further affected China's steel industry. According to Li Xinchuang, deputy dean of China Metallurgical Industry Planning Institute, after China's steel exports fell to 1.908 million tons in January, it further fell to 1.562 million tons in February, a year-on-year decrease of 49.6%, a year-on-year decrease of 18.1%. Since November, the monthly export volume of China's steel products has dropped to a new low.
In contrast, the import of steel has shown a growth trend. In January, China imported 870,000 tons of steel. In February, imports increased to 1.09 million tons. According to sources to be confirmed, in March, steel imports were more than in February, and China became a net steel importer.
Steel exports have played an important role in driving China's steel consumption. In 2008, China exported 59.18 million tons of steel, an average of 4.93 million tons per month.
Li Xinchuang, deputy dean of the China Metallurgical Industry Planning Institute, believes that the main reason for the decline in exports is the continued sluggish demand in the international market and the rise of trade protectionism. In addition, the sharp devaluation of exchange rates in neighboring countries has resulted in weakening the competitiveness of our products. China’s major competitors in the Middle East, such as Ukraine, Turkey, and Russia, have devaluations of 40%, 30%, and 17%.
Similar conditions are also found in raw coke used to smelt steel. China is a big exporter of coke. In the highest month, China exported 1.6 million tons of coke. However, in December last year, China exported only 220,000 tons of coke. In January this year, it exported 70,000 tons. In February, it exported 20,000 tons.
On the other hand, due to the weakness of the international steel market, countries that originally required coke now sell their coke to China, most notably Japan.
In respect of coking coal, international coking coal prices have dropped significantly due to insufficient international demand. At present, the CIF price of imported coking coal is 100-150 yuan/ton cheaper than domestic coking coal. More than 40 coking plants in China are jointly sourced for this purpose.
The same is true of iron ore. Brazilian iron ore is still oversupplying at a 30% reduction in output. Due to insufficient demand in Europe, in the first quarter, Brazil reduced its original supply to Europe by 69%, while the amount to China increased by 47%.
In 2008, China’s steel production capacity reached 600 million tons, but actual consumption was about 430 million tons. There is also a serious oversupply of coke. According to Jin Qiang, president of the China Coking Industry Association, at present, the coking plant operating rate is only 50%. One side is the impact of imports, while the other is the sharp drop in exports. The pressure on the steel industry chain has soared.
Taking steel as an example, Cai Jin, deputy chairman of the China Federation of Logistics and Purchasing, revealed that the PMI index of the China Purchasing Managers Index shows that many industries in China's manufacturing industry, such as transportation equipment and general machinery PMI, have all increased, but steel has not recovered. In addition, the comprehensive price of steel has continuously hit a new low this round since March.
Data show that in January and February of this year, China's steel production reached 91.8 million tons, an increase of 3.1% over the same period of last year.
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