According to statistics from Shenzhen Customs, steel exports from Shenzhen port during the first four months totalled 41,000 tonnes, down by 67.1% YoY from the same period last year; the value was USD 47.34 million, a decrease of 59.5% YoY.
The data shows there are four characteristics for exports during January to April at Shenzhen port.
1. 34,000 tonnes of exported steel products are coming from common trade down by 68.2%YoY but taking up 82.9% of the total exports in the same time.
2. Steel exports to Chinese Hong Kong and EU declined to 14,000 tonnes and 4582 tonnes down by 28%YoY and 17.2%YoY respectively, but that to ASEAN, Africa and Latin America plunges by 69.8% YoY, 46.8% YoY and 59.2% YoY respectively.
3. Private enterprise exported an export volume of 20,000 tonnes amounting for 48.6% of the total exports. By comparison, exports by state-owned enterprises only accumulate at 8104 tonnes a sharp drop of 85.5%YoY.
4. Plate has become the top exported steel product from Shenzhen port.
It is well-known that the steel industry was badly impacted by the financial turmoil of last year, however, there are three other factors weighing heavily on the domestic steel industry.
The warming-up of domestic downstream industries promotes steel imports, thus worsening overproduction. China’s April steel output reached 52.92 million tonnes, up by 2.6%; steel supply volume was 53.81 million tonnes, up by 11.9%; 1.616 million tonnes resources were imported from other areas, 0.205 million tonnes more than exports in the same period, making China a net import country for the first time since January 2006.
On the other hand, the appreciation of the RMB has shrunk margins. China’s steel export prices are generally higher than those of the EU, South Korea, US, CIS and Turkey. Furthermore, the export environment is being affected by trade protectionism. Therefore, Shenzhen Customs suggested speeding up industry regrouping and establishing an early warning system to regulate the market as well as preventing overcapacity. Finally, enlarge sales channels by exporting to developing countries.
Source: Steel Guru
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