Steel items exports to fall in 2018

Source: Xinhua | 2018-03-12

CHINESE exports of steel products may continue to fall this year due to strong domestic demand and reductions in capacity due to environmental commitments, the chairman of Fujian Sangang Group Co Ltd said.

The prediction follows a 30.5 percent plunge in Chinese steel exports last year to 75.43 million tons, as strong domestic prices and high profits at home led to a drop in shipments abroad.

The supply and demand trends are now more in line following the supply-side reforms “while most of the downstream sectors have shown signs of recovery,” Li Lizhang said.

Demand from property, infrastructure, manufacturing and shipbuilding sectors will increase, he said, while steel supply would also pick up this year compared to 2017.

China, the world’s top steelmaker, produced 831.73 million tons of crude steel last year. It aims to cut 30 million tonnes of excess capacity as part of the country’s effort to curb air pollution.

Cities across China are carrying out stringent steps to cut fine particulate matter (PM2.5) readings. The steelmaking hub of Tangshan in Hebei Province said it will extend production curbs for another eight months after current ones expire next week.