China's Stainless Steel Export registers Significant Drops amid Trade Protectionism Measures

According to the latest numbers revealed by China's customs, country's stainless steel export in first four months of 2019 (i.e. from Jan-Apr) have been recorded at 1.1 MnT, thus registering a drop of 22.03% against the corresponding period of the previous year. In Apr'19 the same has been recorded at 298,600 tonnes down by 21% against April 2018.

It seems that China which is the world's largest stainless producer, as well as exporter, is facing trade restrictions from its key markets (especially to Asian countries) hampering its exports. While in August 2018, India had imposed an anti-dumping duty (ADD) on the imports of hot-rolled stainless steel products coming from China, Vietnam had also announced anti-dumping duties on import of cold-rolled stainless steel products for five years in October last year. Other countries like Indonesia has extended anti-dumping import duties for a number of flat-rolled iron and stainless steel products from seven countries, including China and Taiwan which has a share of 20% in country's total stainless steel exports have also announced anti-dumping as well as countervailing duty on stainless steel coming from China.

In terms of imports, China's stainless steel imports have dropped 77% M-O-M to 47,900 in April, this year with 8.76% originating from Indonesia. This was largely lowered by a drop in imports of plate/sheet coils, which shrank 81.36% to 24,900 tonnes. This was because, in Mar'19, China imposed temporary anti-dumping measures on some stainless steel imports from the EU, Japan, South Korea, and Indonesia.

Imports in January-April amounted to 498,900 tonnes, down 35.16% from the same period last year as fewer Indonesian materials entered China. Some 259,600 tonnes of Indonesian stainless steel was imported to China in January-April, down 52% year on year.

China's net exports of stainless steel declined 6.13% from a year ago to stand at 596,800 tonnes in the first four months of 2019, lowered by materials from other countries such as Indonesia whereas net exports of stainless steel in April stood 12% higher than a year ago, at 250,700 tonnes.

Chinese stainless steel mills go for maintenance amid losses

As per the sources, amid fall in revenues below costs, a stainless steel producer with a capacity of 470,000 tonnes in China's south-western province of Guangxi has gone for annual maintenance on its steel and hot-rolled coil capacity. The overhaul is expected to affect stainless steel output by 20,000 tonnes.

Another stainless steel plant in Guangxi, with a capacity of 500,000 tonnes, planned to undergo maintenance for 12 days in June. This is estimated to impact the output by 30,000 tonnes.