According to Mr Shan Shanghua secretary-general of China Iron & Steel Association, China's steel export witnessed a sharp drop in January and February while the steel import clings to the upward trend at the same time.

China exported 1.91 million tonne of billets and steels in the first month of this year, down 54.6% from 4.21 million tonne the same time last year, while in February the export volume dropped to1.56 million tonnes, 49.7% lower than last Feb.'s 3.1 million tonne.

The accumulated export dropped by 52.5% in the first two months this year. And in February, the net export of billet and steel stood at merely 160,000 tonnes. It is believed that China is very likely to become a steel net import country in March.

According to Mr Shan Shanghua the steel exports in January and February are generally originate from last year's contracts, many enterprises have exported no products in the past several consecutive months, and new orders are bound to be less in the coming months.

Currently, the most severe problem in the global steel market has shifted from price to the contracting demand. It is now seems the China's 30 million tons annual steel export target will be challenged amid the gloomy environment.

According to a survey covered 28 major steel exporters like Baosteel, Angang indicates that the total delivery in March could stand at only 299,100 tonnes while in April the amount could further drop to 129,600 tonnes. The export situation is severely deteriorating, making China probably to become a steel products net import country in March.

Amid this particular moment, CISA is likely to adjust its emphasis to launch anti-dumping investigations against the increase steel imports.

According to the data collected in the symposium held by CISA on February 25th 60% of January's steel exports were last year's contracts. It is believed the total steel export this year is likely to drop by 80% from the year of 2008, higher than the previous anticipation of 50% drop.

The symposium was attended by the 25 major export enterprises in China.

Mysteel.net

Monday, 23 Mar 2009

Source: steelguru.com