Chinese steel exports decline to 7-month low

Chinese steel shipments in September of this year amounted to 8.8 million tons, which is more than 2% lower when compared with exports of almost 9 million tons in August 2016. This is the third consecutive month that there has been a decline in Chinese steel exports. The drop in exports is mainly due to trade restrictions imposed by countries around the world and a global decline in demand for steel products.

Chinese steel supplies in September this year amounted to 8.8 million tons. Exports were down significantly more than 21% from 11.2 million metric tons shipped in September last year. However, cumulative steel shipments from the country in the initial nine-month period of the year were up 2.4% at 85.1 million metric tons.

Official production data released by the World Steel Association states that China's total crude steel production in August was 68.570 million tonnes, up 3.0% from 66.573 million tonnes in August 2015.

The rise in domestic steel prices has led the mills to ramp up their production during the month of September. The jump in steel production led to an increase in iron ore imports in the country during the month. Imports of steelmaking raw materials jumped 6% to 92.99 million tonnes in September 2016, the highest so far this year. China's total iron ore imports from January to September 2016 amounted to 763 million tonnes, up 9.1% over the previous year.