China Steel News

In this year’s total steel exports exceeded 100 million tons mark, next year China’s total steel exports can be maintained at what level has become a general concern in the industry topic. From 80 million tons to 100 million tonnes, there is a wide variety of statements, but without exception, there is a consensus that the volume of steel exports next year will be difficult to exceed this year’s level. Next January, the first double drop in steel exports in 4 years has confirmed that China’s steel exports have entered the peak zone. With China’s steel exports into the peak zone, China’s steel export trade has officially entered the window of transition, once the transition is completed, the future China will be completely from the steel export trade power into a powerful trade. The reason for this is that there are several reasons: on the one hand, the total steel exports into the peak area, slowing growth, economies of scale are being diluted. In fact, for the steel industry, the transformation of export trade has long been not a new thing. Just because of the rapid growth of steel mills before, and can earn good profits. Therefore, with regard to the transition, more often than not, we are speaking only verbally, and have not put into substantive action. And now, everything has changed. As China’s steel exports have grown sharply this year, anti-dumping investigations into Chinese steel exports around the world are growing. In particular, the EU, in order to resist the so-called “invasion” of Chinese steel, the trade defense plan is escalating. Affected by this, the latter part of China’s steel exports will be difficult to show a burst of growth. Although a large number of Chinese steel exports is the performance of improving the competitiveness of the market, but with the gradual weakening of the scale of efficiency, steel trading enterprises to continue to survive in this market, must make changes.
On the other hand, environmental costs rise, low-end product market space is squeezed. Although the number of steel exports in China is huge, but in terms of product structure, the export varieties are concentrated in billet, pipe, thread and other low-end products, high-end products exports accounted for a minimum, some high-end products are still long-term dependence on imports. Nowadays, with the increasing emphasis on environmental protection, especially in the history of the most stringent environmental protection law promulgated and implemented, iron and steel enterprises increasingly environmental protection, steel costs of environmental protection rising. Therefore, for low-end products, the promotion of environmental costs further squeezed its profit space, so that it gradually to the meager profit or even loss. But in the long run, although the promotion of environmental protection cost has weakened the price advantage of China’s steel export to some extent, it will help to transform the steel enterprises and change the structure of export products.

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