Stainless Steel Exports Soared in Nov, Implying a Short Recovery of Overseas Demand

SHANGHAI, Dec 22 (SMM) - China's stainless steel imports stood at 292,900 mt in November, a month-on-month decrease of 6.2% but a year-on-year increase of 22.6%, according to SMM statistics. The imports from Indonesia stood at 232,000 mt, down about 13.12% MoM, but up about 24.52% YoY. The percentage of stainless steel imports from Indonesia in the total imports slid to 73% because a major stainless steel plant in Indonesia has cut the production since November. Specifically, the production of slab was maintained while the production of billet was completely shut down. The total import volume of stainless steel in December is expected to remain stable compared to November.

China exported 478,900 mt stainless steel in November, an increase of 28% on the month and 2% on the year, according to SMM statistics. Generally, the destinations became more concentrated, with exports to the top ten destinations accounting for 68% of the total exports. It is worth mentioning that the exports to other Asian countries recorded an increase in November. The exports to India, the largest importer of China's stainless steel, set a new record in November with a month-on-month increase of 57%. It was because that the overseas market still had restocking demand for stainless steel even after the stockpiling for the Christmas holiday finished, which added more orders to the processing plants in India. However, the Ministry of Finance of India announced to cancel the export tariffs for some stainless steel plates and extrusion on November 19. This might put pressure on the exports of China's stainless steel products. Besides, South Korea has become the second largest destination of China's stainless steel exports, where the exports in November gained 171% over the month. The sharp increase was attributed to the sudden failure of POSCO's production lines, so the company sought toll manufacturing from China's stainless steel plants. On the whole, China's stainless steel exports performed well in November, with the potential for a slight growth in December.