China Steel Exports Took A Downturn in June and Likely to Extend Downward Trend in Months Ahead

SHANGHAI, Jul 29 (SMM) – In the first half of 2022, China exported a total of 33.46 million mt of semi and finished steel, a year-on-year decrease of 10.5%, and imported a total of 5.77 million mt of semi and finished steel, a year-on-year decrease of 21.5%. In the first half of 2022, the average price of China's semi and finished steel imports was $1,559.5/mt, a year-on-year increase of 29.2%, and the average price of semi and finished steel exports was $1,437.9/mt, a year-on-year increase of 45.9%. 
In June, the export volume of semi and finished steel was 7.56 million mt, a decrease of 202,000 mt from the previous month, ending three consecutive months of rise, but still at the second highest level in a year, and an increase of 1.1 million mt year-on-year. 
Some delayed orders were delivered, allowing exports to rise MoM in June. 
Looking forward to the second half of the year, the global economy is facing high inflation and low growth pressure. The expansion of manufacturing industries in major economies has slowed down significantly. Overseas demand has weakened as a whole, and prices have fallen sharply. At the end of June, the ex-factory price of EU hot-rolled coil was 17.8% lower than before the outbreak of the Russian-Ukrainian conflict. With the recovery of the global supply chain, the price difference between home and abroad has narrowed significantly. The export quotations of regions such as the Commonwealth of Independent States are now lower than that of China, and price advantage of Chinese steel is not obvious. Export orders began to fall sharply in May. As such, it is expected that steel exports will show a declining trend in the future. In terms of imports, if steel prices in some countries continue to fall, the import volume of steel will increase.