Chinese Finished Steel Exports Drop 13% in Q3 CY18

Finished steel exports witnessed decline by 3% in Q3 CY18 amid upcoming production cuts and high domestic prices.

According to the recent data released by General Administration of customs, Chinese finished steel exports dropped by 13% in Q3 CY18 to 17.71 MnT as compared to 20.30 MnT in Q2 CY18.

China's export volumes may shrink in order to meet low emission target - In July 2018, as a part of its anti-pollution campaign the city has ordered its steel mills to meet new 'ultra-low' emissions targets where steel mills are given timeto meet these targets and in case of failure to meet the targets companies will be ordered to shut down. However, the mills that will pass the emission checks before Oct'18 will be exempted from or ordered to implement fewer production cuts during winters in 2019-20.

However on monthly basis nation's finished steel export volumes inched up by 1% to 5.95 MnT in Sep'18 in comparison to 5.875 MnT in Aug'18. On yearly basis nation's finished steel exports move up by 16% in Sep'18 against 5.14 MnT in Sep'17.

Chinese HRC export offers on average basis stood at USD 574/MT,FoB China in Q3 CY18 inch down by 2% as compared to USD 588/MT in Q2 CY18.

Domestic HRC prices increased - On quarterly basis nation's domestic HRC prices stood around RMB 4,298/MT (Eastern China ) in Q3CY18,higher by 3% against RMB 4,159/MT (eastern China) in Q2CY18. September month in generally construction season for China which resulted in ramping up of production.

Nation's finished steel imports moved up in Q3 CY18 - As per customs data nation's finished steel imports stood at 3.291 MnT in Q3CY'18, higher by 3% against 3.21 MnT in previous quarter.

Similarly on monthly basis nation's steel imports stood at 1.204 MnT in Sep'18 which was 1.06 MnT in previous month.