With the overcapacity of steel in China, the competition in the domestic steel market is intensifying. Not only is the price in China’s domestic market lower than that in the global market, but at the same time China’s steel exports are picking up. This article will analyze the steel export report of mainland China in the first quarter.
1.Total export volume
According to data from the General Administration of Customs of China, in the first quarter of 2021, the total export of steel products in mainland China was 20.43 million tons, a year-on-year increase of 29.9%. Among them, the export of steel products was 19.19 million tons, a year-on-year increase of 26%; the export of pig iron and billet products was 0.89 million tons, a year-on-year increase of 476.4%; the export of steel structure products was 0.35 million tons, a year-on-year increase of 135.2%.
2. Export Destination
1). Asian market: The Asian market is still one of the main destinations for China’s steel exports. According to statistics, in the first quarter of 2021, mainland China exported 10.041 million tons of steel to the Asian market, a year-on-year increase of 22.5%, accounting for 52% of mainland China’s total steel exports. Steel products exported from mainland China to Japan, South Korea and Vietnam all increased by more than 30%.
2). European market: The European market is the second largest destination for China’s steel exports. In the first quarter of 2021, China’s steel exports to Europe were 6.808 million tons, a year-on-year increase of 31.5%. China’s steel exports to the Netherlands, Germany and Poland also saw significant growth.
3). American market: The American market is an emerging export market in mainland China in recent years. In the first quarter of 2021, mainland China exported 5.414 million tons of steel products to the American market, a year-on-year increase of 58.9%. China’s steel exports to the US and Mexico rose by 109.5% and 85.9%, respectively.
3. Export main products
The steel products exported by mainland China are mainly lightly processed and medium and high-end steel products. Among them, the export scale of steel products such as cold-rolled sheets, hot-rolled coils, and medium plates is relatively large, respectively 5.376 million tons, 4.628 million tons, and 3.711 million tons; newly added steel export products mainly include pig iron, steel billets and steel structure products .
4. Analysis
1). Excessive domestic steel production capacity leads to intensified export competition There is overcapacity of steel in mainland China and weak demand in the domestic market. Exports have become a means for steel companies to obtain profits. However, with the protectionist measures adopted by various countries and the uncertainty brought about by the epidemic crisis, China’s steel exports are also facing various pressures and challenges.
2). Export area and product structure upgrade Iron and steel enterprises in mainland China are currently facing the problem of how to optimize the structure of export products and expand a broader market share. In the export market, Chinese mainland iron and steel enterprises need to increase technological improvement and research and development efforts, increase product added value, increase the proportion of high-end product exports, and accelerate the pace of expansion into non-traditional markets.
3). Transformation and upgrading has become a future development trend In the future, iron and steel enterprises in mainland China need to accelerate technological innovation and continue to transform and upgrade. From a single production and operation model to the cooperation of the whole industry chain, the whole industry ecology, and the whole global market, and to the transformation of industrial intelligence, digitalization, and networking, it is the development direction of iron and steel enterprises.
4). Conclusion In general, China’s steel exports maintained a growth momentum in the first quarter, but there are also certain pressures and challenges. In the future, steel enterprises in mainland China need to increase.
Post time: Apr-12-2023