Exports of Chinese steel in March rose

Data from the General Administration of Customs showed that China's finished steel exports increased 2.35% year-on-year to 6.476 million tonnes in March 2020, the highest since July 2018 as Chinese steel mills stepped up efforts to boost exports in March and also in April to ease domestic supply pressure.

Exports rebounded in March after falling 27% year-on-year in January-February. Exports in the first quarter were still 16% lower compared to the same period last year and amounted to 14.286 million tons. Exports of finished steel to China are expected to decline sharply in May-June, despite a rebound in March due to a rebound in domestic demand but weak export demand due to the coronavirus pandemic. Moreover, Chinese steel exporters have lost their competitive advantage over other countries such as Russia, Japan and South Korea, which have lowered their export prices.

On the other hand, China's steel imports rose 26.5% YoY to 1.137 million tonnes in March. In the first quarter, imports rose 9.7% to 3.178 million tonnes. Steel imports are likely to continue to rise during the second quarter