Chinese steel product exports unlikely to fall in 2015 - CISA

Growing demand for low-priced products supplied by Chinese steelmakers to the overseas market is likely to offset the negative impact on exports of tax cut cuts, as noted by China Iron and the Steel Association (CISA). Consequently, the country's steel exports will remain at fairly high levels in 2015.

The Chinese administration's anti-pollution initiatives and anti-dumping restrictions on exported goods in many countries around the world are expected to lead to a marked reduction in production. At the same time, the fall in iron ore prices led to a sharp decline in production costs, thereby increasing the amount of cheap steel products in international markets, where there is a gap in the price of domestic steel and imported Chinese. This makes Chinese exports even more competitive and therefore unlikely to drop significantly over the course of the year.

According to CISA statistics, exports of Chinese steel products have already grown by almost 50 percent in 2014 and reached a record level of 94 million tons. Export growth continued in the first quarter of this year. Chinese steel exports during January-March 2015 increased by 41 percent over the previous year and reached 25.78 million tons. Meanwhile, the country's crude steel consumption fell 6 percent to 177 million tonnes in Q1 2015.

China's steel production also declined slightly, down 1.7 percent, to 200.10 million tonnes in the first quarter. At the same time, steel prices fell. CISA predicts difficult times for the industry in the short term. Weakness in the country's real estate sector has led to a decline in demand and prices. However, CISA expressed hope that the Silk Road Revitalization Initiative could boost demand for iron ore and steel.