SHANGHAI, Jan. 11 (SMM) - According to China Customs, China’s exports of finished steel products were 3.72 million mt in December 2011, down 11.4% MoM, but up 30.5% YoY. During the same period, China’s imports of finished steel products were 1.19 million mt, down 40,000 mt or 3.3% MoM, and down 15.6% YoY.
The significant month-on-month decline in exports of finished steel products in December was closely related with a slowing global economy and waning overseas demand. Meanwhile, marked declines in export price of finished steel products from the Commonwealth of Independent States in December caused Chinese finished steel products to lose price advantages.
Steelease expects China’s exports of finished steel products to drop further in January 2012 due to the following reasons.
First, the growth of steel demand is waning due to a slowing global economic growth. The growth of manufacturing industries in EU, South Korea, and other major export destinations of Chinese finished steel products is keeping falling. In December 2011, the PMI in EU and South Korea was 46.9% and 46.4%, respectively, with the reading below 50% for five months in a row. The contraction in manufacturing sectors will further reduce demand for steel products.
Second, the fewer working days in January 2012 due to the Chinese New Year holiday will also negatively affect exports of finished steel products.
Third, the Chinese currency will remain on an upward track in the long term, and meanwhile export price of Chinese finished steel products has lost price advantages compared with that from the Commonwealth of Independent States, which will also exert a negative impact on Chinese steel exports.