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Why China’s steel exports in September create new low

China’s steel exports in August created a
new high in nearly three years, in September suffered a dump, total exports
fell sharply. EU and emerging economies export situation of uncertainty and
accelerate the appreciation of the RMB is the main reason about China’s steel
exports decline.

According to customs statistics, September
China’s steel exports were 4.92 million tons, MOM fell 1.22 million tons in
August, drop 4.47%; From January to September, China’s steel exports was 46.9
million tons, an increase of 14.6 percent. September, China imported 74.58
million tons of iron ore and concentrates, MOM in August increased 5.57 million
tons, an increase of 14.72 percent, average import price was $ 126.18, MOM rise
7.34 U.S. dollars / ton.

External
demand is still uncertain, September China negative growth in exports to the EU

With the gradual recovery of the global
economy, September global manufacturing sentiment index rose to 51.8%, an
increase of 0.2 percentage points and create a new 27-month high. But the
euro-zone manufacturing sentiment index totally fell 0.3 percentage points to
51.1%, according to statistics, compared with the same period of last year
September China total value of exports to the EU appeared 1% of negative
growth, compared with August fell 3.1 percentage points. On a month-on-month
basis, September China exports to the EU fell 8%. Situation is analogous that
exported to other area in the world, September total trade of China’s exports
in East Asia fell 2.8 percent, only Japan and Vietnam export value MOM appear
rise, Japan’s growth of 16.7%, an increase of 7.8% in Vietnam.

Looked from international market’s major
economies¡¯ export performance, although the performance of the global
manufacturing economy steadily recovering, Asian economies have also
maintaining recovery situation, but the total value of imports from China did
not improve.

Overall
decline in international steel prices, China steel export prices fell slightly

With the Fed’s heating of Quantitative
Easing, international markets all want to avoid risk, commodities collectively
appeared price decline. Led by the capital market of price reduction, the
international steel prices also totally reduce. Because China’s finished steel
export prices fell slightly, reducing the low price export advantage of
finished steel, which is relatively unfavorable on the latter exports.

Global
crude steel production growth, create a new high in past two years

Statistics show that, September 2013 Global
64 major steel-producing countries and regions of crude steel production is132.5
million tons, year on year an increase of 6.1%,the growth rate is the highest level
since November 2011, which show that global economy is significant improvement.
However, this result directly result an oversupply of global steel market, therefore,
China’s steel exports become more difficult.

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