Chinese Steel Export Impacted by Low Priced Overseas Cargos

BEIJING, Apr. 17 -- It is reported that Chinese steel products have lost their price competitive edge compared with the products from Russia or South Korea.

    China's steel export was impacted by the policies from US and EU and at the same time, low priced steel products from Ukraine, Russia and South Korea weighed heavily on China.

    It is reported that about 0.3 million tonnes low priced HRC from Ukraine swarmed into China in end February.

    Industry expert analyzed that "Import quotation of HRC from Russia and Ukraine in March surged to USD 320 per tonne while the price in domestic market stood as high as CNY 3150 per tonne which means the price difference was widened above CNY 1000 per tonne."Industry insiders unveiled that "However, Chinese steel industry was only impacted a little by such low priced imported cargos owing to the small amount of volume.

    The volume took up 5% of China's monthly HRC production of 6.0117 million tonnes in November 2008. But some relative experts consider those imported resources is becoming the main driver behind Chinese export drop.

    At present, Turkish HRC quotation is lower than Chinese one to Middle East."One expert said that in order to cut inventory, all steelmakers in the world start to slash export price on the foundation of currency depreciation. All Chinese steel products have lost their price competitiveness except steel tubes so far. Some prices at abroad are still lower than Chinese one even after the export rebate increase since April 1st.

    Mr Liu Yuan said the root of the price fluctuation dates back to soft demand. Currently such biggest steel consumption industries as real estate, auto and ship building industries, remain at a gloomy situation.

    Take South Korea as a benchmark its top three shipbuilding enterprises have received no orders since February.

    Cases are the same with China although it adjusted export rebate for 23 steel precuts on April 1st. The effect of it quite limited amid the sluggish market.

    (Source: China Metallurgical News)