How did the exports of galvanized sheets perform in June with the soaring ocean freight and the Southeast Asian rainy season? [SMM analysis]

According to the latest customs data, in June 2024, the export volume of galvanized sheets was 980,600 mt, up 12.05% MoM and up 13.96% YoY compared to 860,400 mt in June 2023. From January to June 2024, the cumulative export volume of galvanized sheets was 6.1687 million mt, up 14.78% YoY compared to 5.3743 million mt in 2023. Overall, the export volume of galvanized sheets in June decreased but remained higher than last year's level.

By country, Thailand imported 118,300 mt of Chinese galvanized sheet in June, accounting for 12.07% of galvanized sheet exports, ranking first; the Philippines imported 115,900 mt, accounting for 11.83%, ranking second; South Korea imported 115,900 mt, accounting for 11.83%, ranking third. In June, the top three countries for galvanized sheet exports remained unchanged. The figure below shows the country-wise distribution of China's galvanized sheet exports in June.

The export volume of galvanized sheets in June fell compared to May. SMM believes the main reasons are as follows:

1. Ocean freight soared again in June, leading some overseas customers to choose to delay or cancel related order shipments, affecting the export volume of galvanized sheets in June;

2. The rainy season has arrived in Southeast Asia in June, and China's export orders for galvanized sheets were affected to some extent. The import volume of Chinese galvanized sheets in countries such as Thailand, Vietnam, and Indonesia all declined in June.

In July, the continued depreciation of the RMB spot exchange rate supports the export of galvanized sheets, but the impact of the rainy season in Southeast Asia persists. Considering the recent actual export orders of companies, the export volume of galvanized sheets in July may continue to decline.