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China: Steel billets import fall nearly 60% m-o-m in Apr'22

China, the world’s largest steel producer, witnessed a sharp decline in imports of steel billets in April 2022. Import volumes stood at 0.31 million tonnes (mnt) la...

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23 May 2022, 18:40 IST
China: Steel billets import fall nearly 60% m-o-m in Apr'22

China, the world's largest steel producer, witnessed a sharp decline in imports of steel billets in April 2022. Import volumes stood at 0.31 million tonnes (mnt) last month, a sharp 57% m-o-m fall compared to 0.71 mnt in March, customs data maintained with SteelMint shows.

Oman, leading exporter

Oman continued to be the largest exporter of steel billets to China at 0.12 mnt in April. But, import volumes from Oman witnessed a sharp fall of 57% m-o-m as against 0.28 mnt in March.

Russia occupied the second position among the top importers in April 2022 with 0.08 mnt followed by Iran with 0.05 mnt. However, imports of steel billets from Russia and Iran fell sharply by 53% and 58%, respectively.

Why have imports fallen?

Steel production curbs, limited demand for semi-finished steel, preference for domestic billets amidst cost competitiveness and Covid upsurge followed by lockdown restrictions decreased the country's import bookings, SteelMint understands.

Billet imports down in Jan-Apr, 2022

Imports of the material into China stood at 2.28 mnt in January-April, 2022, a decline of 16% y-o-y as against 2.73 mnt in the same period last year.

Considering y-o-y, Oman was the largest exporter of steel billets with 0.60 mnt followed by Russia and Iran with 0.55 mnt and 0.32 mnt, respectively.

Price trends

SteelMint's assessment of China's imported billets (150*150mm, 3SP) prices rose to $690/t CFR in end-March, 2022 from $675/t CFR levels in the end-February amidst demand-supply mismatch post-Russia-Ukraine trade tensions. However, prices fell sharply to $643/t CFR by end-April.

Chinese billets import outlook bearish

China's imports of semi-finished steel are expected to be on the lower side owing to weak domestic demand and lockdown restrictions in some regions due to the recent upsurge in Covid-19 cases.

 

23 May 2022, 18:40 IST

 

 

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