Steel Supply for China

Steel Supply

China is a big part of the steel supply in the world. For that, China put so many alloy steel, carbon steel, mold steel, high-speed steel and etc to the world for each country. It is a big power for industry development in the world. 

Steel supply policy

Steel supply to other countries has a good policy in China. The main part is that suppress low value-added steel exports and encourage high value-added steel exports. And the example is that billet, carbon steel, stainless steel, alloy steel and etc. That is closely-related with our local economic development and export environment condition.

First of all, China must take the pressure more and more as the day going into this world economy development condition. According to public information, there were as many as 37 times anti-dumping and countervailing cases against steel products in China in 2015. In 2016, this figure was 43 times. And another thing is that local develop structure is unbalanced. In order to bring the production gets better, must keep down the lower production and take the effort to make high-value products. So in recent years, the government raise the export tax for this part slowly to make it down. Finally, the environment production is the most important purpose. Iron and steel smelting is a high-pollution and high-emissions industry. By raising the export tariffs on ordinary steel, it is conducive to reducing the demand and output of ordinary steel.

Chinese steel export situation

China is the main countries for the world at the part of steel production. The steel production is 1.138 billion tons, it is almost 70% for the world. Steel export volume is positively correlated with the steel price. The lower the steel price, the more exports. In 2015, steel prices fell to the lowest level, while the export volume reached its peak. In 2016, with the implementation of the national supply-side reform, steel prices stopped falling and steel exports fell.

Main type for Chinese steel supply for the world

According to the data, the most popular types for our country export is the bar, rod, tube and etc. Mainly based on plates and bars, the exports of plates and bars in 2016 were 48.03 million tons and 41.26 million tons, respectively, accounting for 44% and 38% respectively.

The main countries of steel export for China

Southeast Asia is the main part of that. According to the export amount, South Korea is the biggest one. In 2016, it imports steel from China almost 14.33 million tons. China's top 10 countries in terms of steel exports, in descending order: South Korea, Vietnam, the Philippines, Thailand, Indonesia, Malaysia, India, Saudi Arabia, Singapore and Pakistan.

As the country with the second-largest export volume of steel in China, Vietnam has been at a high level in recent years due to its infrastructure and urban construction demand, and the demand for steel is huge. The growth rate of China's exports of Vietnamese steel is obvious, rising from 7% in 2014 to 11% in 2016. At the same time, Vietnam also belongs to China's trade scope with the “Belt and Road” countries. China's steel traders are currently actively expanding customers in Southeast Asia, the Middle East and Africa.