Chinese Steel Imports Increase; Exports Fall in Jan- Apr'20

Chinese steel imports registered 7.4% growth on the year to 4.1 MnT during Jan-Apr'20, recent data released by the customs. The reasons attributed to the rise are mentioned below-

-- The pandemic leads to lowered steel output resulting in a supply crunch.

-- This, in turn, leads to a hike in domestic prices which created room for imports.

-- Mills have been actively booking billet, pig iron, and flat steel from overseas nations.

Chinese Steel Exports Decline 12% Y-o-Y during Jan-Apr'20-

As per the data released by the General Administration of China's Customs (GAC), the nation's steel exports during the first 4 months of CY'20 (Jan-Apr'20) fell by 11.7% Y-o-Y to 20.6 MnT.

-- Strong Chinese domestic demand, and competitive offers from CIS, and India lowered Chinese steel export volumes.

Nation's HRC export offers fell sharply in Apr'20- As per data maintained with SteelMint, the nation's HRC export offers stood at USD 408/MT FoB basis in Apr'20 as compared to USD 460/MT FoB basis in Mar'20.