Insight
China imports more semi-finished steel as finished steel exports drop
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
In H2 2019, China’s imports of semi-finished steel products have skyrocketed, which is playing out against the backdrop of falling finished steel exports. Chinese producers have been losing their cost competitiveness and consequently market share to other cheaper sources of steel. Chinese producers can take advantage of such low prices in international markets by buying more semis from overseas, which explains the recent hike in billet imports.
Table of contents
- Executive summary
- China imports more semis and exports less finished steel
- It is cheaper to import billet than to buy it domestically
- No incentive to export finished steel with a relatively stronger domestic market
- Chinese steel producers are losing competitiveness
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Higher feedstock costs have held Chinese producers back
- Higher iron ore cost
- Higher scrap cost
- Higher domestic coking coal cost
- High costs erode competitive edge in global market
- How does this affect our forecast?
Tables and charts
This report includes the following images and tables:
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Semis imports have been rising since May 2019Finished steel exports have continued to fallBillet is cheaper in foreign markets than in the domestic market
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No incentive to export rebar as its domestic market is betterNo incentive to export HRC either, even though its domestic market is weaker than the rebar marketSteelmakers would make losses exporting to weaker foreign markets, as they are only making very thin margins in the relatively stronger domestic marketDomestic scrap price is remarkably higher than the price in the foreign marketChina’s coking coal price is also higher than the price in the international market
What's included
This report contains:
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