Chinese steel imports rise by 12% Y-o-Y during Jan-May'20

Chinese steel imports during the first five months of CY20 stood at 5.46 MnT, registering a Y-o-Y rise if 12%. While, in May'20, the same was recorded at 1.28 MnT to register a M-o-M rise of 27%.

Amid COVID-19 outbreak, almost every country were facing dull domestic demand, due to which, the exports developed in as their major focus. And since China was the only economy that was recovering from the pandemic, the enormous steel volumes got routed towards the country. Hence, from the few months, China was driving the global steel market.

Moreover, lower inventories resulted in a sharp hike in Chinese domestic steel prices, creating room for cost-effective imports. For instance, Chinese domestic billet prices are assessed at RMB 3,280/MT ex-Tangshan (including VAT) at the end of May'20, compared to RMB 3,080/MT in end-Apr'20.

Several deals for billet imports have been concluded from India, Iran, and CIS nations, and the market still continues to remain active. Apart from billets, Chinese mills have also been actively booking slabs, pig iron, HRC to make up for high domestic prices.