Amid the Tariff Storm, the US Announces Strict Scrutiny of Re-export Trade. Can Galvanized Sheet Exports in April Still Be Expected? [SMM Analysis]

SMM April 21 News:

According to the latest customs data, galvanized sheet exports in March 2025 reached 1.2902 million mt, while cumulative exports from January to March 2025 totaled 3.3874 million mt, up 14.28% YoY compared to 2.964 million mt in the same period of 2024. Overall, domestic galvanized sheet exports in March showed robust performance.

By country, Thailand imported 134,300 mt of Chinese galvanized sheets in March, accounting for 10.41% of total exports, rising to the top position. The Philippines imported 116,500 mt, accounting for 9.03%, dropping to second place. South Korea imported 109,500 mt, accounting for 8.49%, falling to third place. In March, imports of Chinese galvanized sheets from countries such as Thailand, the Philippines, South Korea, Israel, Vietnam, Brazil, Pakistan, and Saudi Arabia saw significant increases, while imports from Iraq, Indonesia, and Chile experienced varying degrees of decline.

SMM believes the MoM increase in galvanized sheet exports in March can be attributed to the following factors:

1. Some Southeast Asian companies, concerned about potential tariff hikes, placed advance orders for galvanized sheets domestically, leading to a "rush to export" phenomenon.

2. Domestic galvanized sheet factories fully resumed operations in March, and orders received before the Chinese New Year continued to be processed.

3. Domestic ferrous metals prices remained weak in March, leaving some profit margin for galvanized sheet exports.

Entering April, the US-China tariff dispute has escalated further, making direct exports to the US nearly impossible under the current tariff rates. Additionally, some Chinese galvanized sheet exports are re-exported to the US. In April, the US announced varying tariff rates on countries such as Vietnam, South Korea, the Philippines, and Thailand. Although the US has granted a 90-day exemption period for these countries, on April 15, US customs announced stricter scrutiny of re-export trade. Coupled with ongoing anti-dumping investigations by Southeast Asian countries against China, market sentiment is increasingly concerned about Chinese galvanized sheet export orders in Q2. SMM will continue to monitor the performance of galvanized sheet exports.