China’s steel exports may decline in the coming months due to growing international pushback, Bloomberg reports.
Vietnam has joined the US and Chile in initiating anti-dumping investigations against Chinese steel, as the surge in exports fuels global economic tensions.
China exported over 53 mln tons of steel in the first half of the year, the highest since 2016, though exports have tapered off since March. Despite expected moderation, exports will likely remain high compared to historical norms, as foreign markets are vital for offsetting weak domestic consumption, hampered by a prolonged property market crisis and limited infrastructure spending.
Domestic steel conditions are worsening, with the latest purchasing managers’ index indicating continued contraction despite a slight rise in new export orders. The steel market is oversupplied, with rebar prices hitting a seven-year low and HRC export prices nearing their lowest since 2020.
The steel industry faces scrutiny for potentially evading taxes to lower export prices, though the impact of government tax checks may be minimal. Steelmakers have been reluctant to make significant production cuts needed to balance supply and demand, the report added.
