China's steel exports surge or trigger a global trade war
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According to the China Iron and Steel Association, China's steel output accounts for half of the world's total, and steel exports are expected to reach 80 million tons this year.
As China's economy slows to a new low in the past 20 years, Chinese steel producers have increased their exports to other markets, but this may exacerbate the tension in the trade situation.
Luo Yongdong, head of the import and export department of Pangang Group, told Bloomberg: It is certain that the trend of (steel) exports will continue until next year. As a result, trade disputes will also increase.
Hebei Iron and Steel Group Tangshan Branch said that this week will begin to export automotive panels for the first time in Latin America. At the same time, Xuancheng Branch has exported hard wire steel to Japan for the first time on November 7.
Complaining
Kiyoshi Imamura, general manager of Tokyo Steel Manufacturing, said that China's huge steel exports will reach 100 million tons a year, equivalent to the full year of production in Japan. Japan is the second largest steel producer in the world.
According to Bloomberg News, Kobe Steel and Posco of South Korea have complained that the flood of Chinese steel has seized their market share. China's steel was once deposited in ports in India and Africa, so local producers had to seek intervention from their governments.
In addition, China's steel exports are as far as the United States, and US steel imports in September increased by 50%. The amount of steel exported to Taiwan and India has increased by more than four times.
Wei Zengmin, an analyst at Mysteel.com, China's largest steel industry research company, said that in Southeast Asia, Chinese producers are able to sell certain steel products at ultra-low prices because of their low cost; their prices are 40-50 US dollars lower than those of South Korea. / ton, lower than Japan's $ 100 / ton.
The analyst believes that this is not just because of low labor costs, China's biggest advantage lies in the scale of steel production. The fierce competition among Chinese steel producers has forced them to squeeze profits and lower prices.
Export record
According to customs data, in September this year, China's steel exports reached 8.52 million tons, a surge of 73% year-on-year, a record high.
Due to the slowdown in economic growth, domestic demand has been weak, and Chinese steel companies have begun to try to find a way out of the international market, trying to make up for the gap in the domestic market through exports.
China Customs spokesman Zheng Yuesheng said that China's steel industry has a serious overcapacity, and steel in some areas has fallen to "cabbage prices."
Although most of China's steel is mainly exported to Asia, it has also felt the pressure of Europe and the United States through the chain reaction of prices and the global steel trade.
The Financial Times quoted Kevin Dempsey, senior vice president of the American Iron and Steel Association, as saying: "The US steel industry is facing the challenge of importing a large amount of steel around the world. We are seeing some signs of a recovery in the US economy. All of our steel consumption growth comes from For imports, this includes steel from China."
According to data from the London metal consultancy CRU last month, global steel prices have fallen by an average of 7% since January this year.
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