Steel Import&Export in July of China

In July, to answer the call of China government "steel production shall meets domastic needs in priority", the export of steel was in small range of vibration. In the meantime, the global production of steel has been recovering steadily from COVID, has also lead to pressure of the export from China.




Production/Supplier


Steel manufacturerer one: they export steel plates range from mid-high thickness, its sales in July has clearly reduced from June. The main course is to answer the call of the nation so they adjusted export ratio accordingly. Also oversea local supplier price has been lowered which has minimized its price advantages.


Steel manufacturer two: their export order was signed in May when China has cancelled tax refund for hot rolling steel plates, despite of this, the China steel exporter still has price advantages. So they got a good number of orders from abroad and shipped in July.



Trading


Trading company one: overal shipping number has a slight deduction from June, but has limited impact only. The deletion was mainly for steel plates. Regards to steel rolls, as rumor suggests there will be export tax in later months, the order of August to October has been brought forward to July. So in the next few months the orders will be much more reduced.


Trading company two: locates in Shanghai, its export of hot rolled steel in July has reduced 45% compared to June. The reason is bad situation in export result in manufacturer less support.


Trading company three: locates in Wuxi. In July they shipped 10K Tons hot rolled steel than in June. Their needing are from South America and considering the rumor of tax adding, they arranged some future order into the later of July.


Trading company four: major in cold rolled steel plates. They have achieved a big increase, 40% ~ 50% more than in June. It was due to high export profits and expectation of tax refund cancel, the dispatch frequency has been increased a lot. Further reports said although the government has cancelled the tax refund but they still have a good margin on export, some manufacturers willingness of cooperation has lowered but generally its fine.


Trading company five: locates in Shanghai, in July they only have a slightly reduced order than June, but according to them, their orders has been largely infected which means in August and September shipments will be much more less.





Ports


Ports A: In June the steel products export has a minor increase, total 380K tons. Due to the cancellation of tax refund for cold rolled steel plates and the rumor of adding export tax to hot rolled steel plates, many manufacturersa and trading companies are grabing their time to export as much as possible. We could see in Augest and September the quantity will be less and less.


Ports B: Locates in eastern China, its import in July has increased 12% than in June, the reason was in June the number decreased a lot, now its just coming back to normal.


Ports C: In July the port export of steel has lowered than 30%, the state owned steel manufacturer has reduced export and we are seeing the export will be lower and lower by months.


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