China's steel exports rise sharply by 35% y-o-y in Aug'23

beijingwalker · Sep 8, 2023

China's steel exports rise sharply by 35% y-o-y in Aug'23

China’s steel exports rose by 34.6% y-o-y to 8.28 million tonnes (mnt) in August 2023, according to data from the General Administration of Customs. Exports inc...

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By SteelMint Bureau

7 Sep 2023, 17:49 IST

China's steel exports rise sharply by 35% y-o-y in Aug'23

China's steel exports rose by 34.6% y-o-y to 8.28 million tonnes (mnt) in August 2023, according to data from the General Administration of Customs. Exports increased by 13% m-o-m from 7.31 mnt in July 2023.
In the January-August period, China's steel exports rose by 27.5% y-o-y to 58.785 mnt.

Why exports increased?
1. Weaker domestic demand: The Chinese economy is slowing down, which has led to weaker demand for steel. This is forcing Chinese steelmakers to export more steel in order to maintain their current production levels.
2. Weaker yuan: The depreciation of the yuan against the US dollar has made Chinese steel exports more competitive in international markets. In June 2023 price of $1 was RMB 7.147 which increased to RMB 7.232 in August 2023.
3. Rising prices of steel in other countries: Steel prices have been rising in other countries such as the United States and Europe. This has made Chinese steel more competitive in these markets.
4. Increased demand from developing countries: Some developing countries, such as India and Brazil, are experiencing strong economic growth, which is leading to increased demand for steel.

Outlook
Overall, the surge in Chinese steel exports in August is a positive sign for the Chinese steel industry. However, the outlook for the industry remains uncertain. The global economy is slowing down, which could dampen demand for steel in the coming months. Additionally, the Chinese government is taking steps to reduce steel production, which could also limit export growth.