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Analysis of Chinese steel exports to ASEAN

ASEAN market demand for steel strong, but
due to the local iron and steel industry is weak, the ASEAN countries mainly
rely on imports to meet demand of steel. 2012, ASEAN surpass South Korea to
become China’s largest steel exporter.

2013 January-July Chinese steel exports to ASEAN
situation

Latest Customs statistics show, 2013 January-July,
China’s steel exports mainly flow to Korea and ASEAN countries, China’s steel
export volume of the top ten countries, ASEAN countries accounted for 6, South
Korea is still ranked first.

In the first seven months, China’s steel
exports reached 35.84 million tons, an increase of 13.7%. In which ASEAN
exports of steel totally reached 9.58 million tons, an increase of 34 %,
accounted for 26.73% of China’s total steel exports. Apart from January,
Chinese steel exports to ASEAN monthly volume more than 1 million tons. Which in
March due to seasonal factors export reached 1,789,200 tons, then export
volumes declined. July, ASEAN exports to China of steel capacity fell to 1.167 million
tons.

Look from the National, Vietnam as 2.15
million tons of total amount exceed Thailand to become China’s largest steel
exporter in ASEAN. Followed by Thailand and Singapore, Chinese steel imports
are 1.5 million tons or more. While the number of steel exports to Indonesia,
Philippines and Malaysia are exceeded one million tons. The number of steel
export to these 6 countries accounted for 92.6% of total steel exports to ASEAN.

Analysis of Chinese steel variety exports
to ASEAN

Chinese steel exports to the ASEAN still
dominated by sheet, followed by the wire rod, angle profiles and tubes.
Specifically, China exported 3.89 million tons of plates to ASEAN, accounted
for 40.61% of total steel; exports of wire rod is3.41 million tons, accounting
for 35.61 percent; Exports of angle profiles and tubes were 1.04 million tons
and 80 million tons, accounting for 10.89 % and 8.38% of total exports.

Major countries of ASEAN steel market
situation

Currently, the ASEAN countries of the steel
market are still in short supply. 2011, six major ASEAN member states Vietnam,
Malaysia, Thailand, Indonesia, the Philippines and Singapore of crude steel
production reached 20.65 million tons, an increase of 5%, which the year’s
steel consumption rose to 54 million tons, an increase of 7%.

ASEAN steel consumption increased primarily
from rapid growth in imports. 2012, ASEAN steel imports rose 8 percent to 36.9
million tons, of which more than 80% of imported steel use for construction and
shipbuilding industries. Japan, China, Korea and Taiwan is still the main
importing countries of ASEAN steel market.

In 2010, with China – ASEAN Free Trade Area
officially launched China and 10 ASEAN countries started to enter the era of
zero tariffs, which making Chinese exports to ASEAN of steel varieties increase
sharply. In ASEAN total steel imports, the proportion of Chinese products
increased year by year. 2009, China’s total imports of steel in the ASEAN
accounted for only 10%, in 2010 this proportion rose to 17%, and in 2011 further
increased to 23%, making China to be ASEAN’s second largest steel importer.

South East Asia Iron and Steel Institute
(SEAISI) data show, 2012, ASEAN imports longs from China soared more than 2
times of the number. China, as ASEAN’s largest profiles importing country, the
number of profiles exports to ASEAN increased 70% last year. The wire rod
imports from China also rising more than twice to 100 million tons. The main
importer of hot-rolled sheet is China, but last year the number of hot-rolled
plates only rose 3 percent, maintained at 100 million tons.

In recent years, the construction industry of
ASEAN countries is rapidly develop, the increasing demand for building
materials and the market potential is huge. In which proportion of steel consumption
in the Philippines reaches 81%, Malaysia and Singapore are also accounted for
more than 70%.

Steel trade friction between ASEAN and
China to upgrade

ASEAN officially surpass South Korea last
year, becoming China’s largest steel export zones. At the same time, ASEAN is
also changed to major sponsors for the Chinese steel products trade remedy
investigations. In the context of the global economic downturn, the national
steel demand reduced and excess supply. In order to protect the profit of domestic
steel industry, since 2013, the ASEAN countries against China initiated steel
trade protection measures intensified.

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