China's Steel Exports Set New Record

According to the latest data from customs statistics, steel exports from the country reached a new record level in October 2014. Based on the current results, the total volume of steel exports from China for the whole 2014 is likely to exceed 90 million tons. Steel product shipments will remain strong throughout the rest of the year ahead of the expected change in tax policy from January 2015.

Exports of finished rolled products totaled 8.55 million tonnes in October this year, up nearly 70 percent from exports in October 2013. Cumulative exports from China for ten months of this year amounted to 73.9 million tons, which is 42 percent higher compared to exports in the same ten months last year.

If shipments continue to maintain a similar momentum throughout November and December, the country's total steel product shipments throughout 2014 are likely to be able to cross the 90 million tonne level. According to customs data, shipments may continue to increase further towards the end of this year, as lack of clarity on tax policy changes could force buyers to accelerate their purchases. It is still unclear whether the VAT rebate will be removed for all steels or only for alloy steels.

Meanwhile, the country's total imports of finished rolled products in October amounted to 1.09 million tons. Imports in January-October this year amounted to 12.09 million tons, which is 4.1 percent higher compared to imports during the same period in 2013.