SHANGHAI, Nov. 12 (SMM) – Exports of Chinese finished steel products rose in October from September’s, mainly because falling steel prices since late August allowed Chinese steel products to enjoy price advantages in overseas market, the latest Steelease survey showed.
According to China Customs, China’s finished steel exports were 5.07 million mt in October, up 3.0% MoM and 4.8% YoY. Finished steel imports were 1.14 million mt in October, down 8.1% MoM, but up 10.7% YoY.
Steelease expects China’s finished steel exports to continue rising in November.
First, demand has not waned considerably, though a traditionally peak demand period has ended. The manufacturing PMI from Eurozone, South Korea and India remain above 50 in October, suggesting that business activities in those regions or countries were continuing expanding. Besides, the upcoming Christmas holiday will also give a boost to steel demand.
Second, export prices of Chinese finished steel products have been falling with domestic steel prices, while prices for products from the Commonwealth of the Independent States held stable. Price competitiveness will help attract more buying interest.
Third, domestic steel mills planned to increase exports in November, to ease high inventories, according to Steelease survey.