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Highlights
- Chinese steel exports hit highest levels since 2016.
- Exports increase despite trade tensions and market challenges.
- Domestic market slowdown contributes to export surge.
Chinese steel exports in September reached their highest levels in seven years, totaling 10.2 million tonnes. This surge, which brings year-to-date exports to nearly 81 million tonnes, marks a 21% increase compared to the previous year. The increase has raised concerns globally as China, the world's top steel producer, exports more of its surplus to international markets.
The domestic demand for steel has been weak, largely due to the prolonged downturn in China's property market. With fewer projects requiring steel within the country, Chinese traders have been motivated to export excess material to overseas markets. This shift has drawn attention and complaints from regions such as Southeast Asia and Latin America, where local industries feel the impact of increased Chinese steel imports.
Steel remains one of the most affected commodities as a result of China's economic challenges, particularly in real estate. The volume of steel exports has led to trade disputes, adding to the broader concerns about China's growing influence in global markets, especially as its exports of higher-tech products like electric vehicles and batteries have also sparked debate.
At a recent trade briefing, Chinese customs officials addressed these concerns, stating that the majority of China's steel production is still consumed domestically. They emphasized that while the volume of steel exports has risen, the overall dollar value of these exports has fallen by 5% in the first nine months of the year, primarily due to declining global steel prices.
This ongoing situation presents a complex scenario for global trade, as nations navigate the impacts of China's shifting steel export strategies.
