Since the beginning of the year, the export structure of steel products has dramatically changed in China due to the substantial reduction of export for bar or wire products.
According to the export data of the steel products released by Shanghai Steel Union Export Research Team, the exports of steel products has sharply reduced by approximately 5,000,000 ton on a month on month basis, and it’s estimated to be 25,000,000 million ton less year on year.
The customs statistics showed that the exports of bar products is 12,090,00 ton from January to August 2017 which has been decreased by 61% month on month, and the fall continued to expand, by august the number has reached 15,490,00 ton, which attributed to the export of other alloy bar under the H.S. code 72283090, its monthly exports has sharply reduced from the highest 3,590,000 ton in June to 550,000 ton by now. The historical data shows that the exports for alloy bar under that H.S code has been increased after its tax return was canceled on boron alloy steel products, before
Hypothetically, scrap steel can be totally eliminated, thereby it will make the steel supply shortfall, and the threaded bar steel will no long be exported under H.S code 722830, in other words, the monthly exports of steel products under that H.S code will probably be reduced from the present 550,000 ton to 350,000 ton, there still be probably 200,000 ton reduction maximum, it means by Sep-Dec 2017,the total decline will be 5,470,000 ton under that H.S code in steel products month on month, which it can be predicted that the max export reduction of the steel products will be 70%, which is about 20,960,000 ton
Regardless of the export of the items under the H.S code 722830, during the period from Jan 2017 to Aug 2017, the exports of steel products fell by 12.4%, which was about 67,400,000 ton, among which 3,400,000 ton loss in bar products of which fell by 39.3%.
The export of cold rolled steel and galvanized steel have better performance compared with the bar products this year, the total exports of steel products was 31,060,000 ton from Jan 2017 to Aug 2017, which is 1,250,000 ton loss, 3.9 % decline, including 3,490,000 ton for cold rolled steel exporting and 8,590,000 ton for galvanized steel exporting, the export volume of these two sheet products increased by 28.1% and 3.4% respectively, for hot rolled steel products, there was 10,080,000 ton exports with 2.7% decline, by the 27th of September, the price of thread steel has increased by 22.8, with 1.2% decline in cold rolled steel,0.3% increase in galvanized steel, 8.6% increase in hot rolled steel.
