Asian steel exports continue to rise
19 September 2024: The global steel market continued stagnating ahead of the summer holiday period, but a substantial decrease in steel prices spurred demand for finished products in the major outlets.
Imports to the United States surged sharply in July this year, gaining 11% on the year, to around 2Mt. Deliveries amounted to about 13Mt (year to date), slightly above the figures for the previous year, with shipments increasing predominantly from Asia where suppliers rushed to export as the regional economy failed to show any signals of recovery. At the same time, a sharp drop was recorded in import volumes from Mexico to the USA, with a melt and pour requirement introduced in early July. In addition, the Section 232 duty rate increased for imports of steel articles and derivative steel articles that are products of Mexico melted and poured in a country other than Mexico, Canada, or the United States.
In the meantime, China has released the preliminary results for August shipments, indicating a 15% hike in exports of finished products year-on-year and over 20% on July, to 9.5Mt. Over the first seven months of 2024, Chinese shipments totalled 61Mt, a 22% rise compared to the previous year, with the expectation they will reach 100Mt this year. Chinese suppliers cut prices for finished products in an attempt to stimulate sales on the back of stagnation in the domestic market. In July, China’s crude steel production amounted to around 83Mt, a 9% decline compared year-on-year, according to the World Steel Association. In the first seven months of 2024, the output fell to 613.7Mt against 627.5Mt over the same period last year.
In the meantime, Turkey boosted exports of finished products by over 40% in July year-on-year, to around 1.3Mt, with shipments amounting to about 8Mt in the first seven months of 2024. Turkish producers were able to increase their competitiveness owing to cheaper semi-finished products and raw materials as well as tight trade restrictions in Europe which limited opportunities of alternative suppliers. The major export destinations for Turkey were Italy, Yemen, Ukraine, Romania and Portugal. Thus, Turkish steelmakers increased crude steel production by 4% in July compared to the same month a year ago, to 3.1Mt, while imports of finished products to this market substantially dropped amid tough market conditions in Turkey.