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According to customs data, in April, China imported 585000 tons of steel, a decrease of 97000 tons month on month and 371000 tons year-on-year; The average unit price of imports is 1768.5 US dollars per ton, a month on month increase of 6.5% and a year-on-year increase of 12.4%. From January to April, China imported 2.498 million tons of steel, a year-on-year decrease of 40.1%; The average import unit price is 1726.3 US dollars per ton, a year-on-year increase of 14.5%; Imported steel billets reached 917000 tons, a year-on-year decrease of 68.7%.

In April, China exported 7.932 million tons of steel, an increase of 42000 tons compared to the previous month, marking the fourth consecutive month of growth, with a year-on-year increase of 2.955 million tons; The average export unit price was 1097.5 US dollars per ton, a decrease of 15.2% month on month and 23.3% year-on-year. According to customs data, from January to April, China exported 28.014 million tons of steel, a year-on-year increase of 55.0%; The average export unit price is 1209.8 US dollars per ton, a year-on-year decrease of 14.3%; Exporting 988000 tons of steel billets, an increase of 817000 tons year-on-year; The Balance of trade of crude steel was 26.527 million tons, up 1.3 times year on year.

Export situation of steel products

In April, China's steel export volume rose four times month on month, reaching the highest level since May 2021. Among them, the export volume of coated plates increased significantly month on month, while the export volume of medium plates, steel bars, and thick steel plates increased by more than double year-on-year and was at a stage high. There has been a significant increase in exports to the European Union, with the increase mainly coming from exports to Italy. The specific situation is as follows:

Classification situation

In April, China exported 5.27 million tons of sheet metal, a decrease of 0.2% month on month, accounting for 66.4% of the total export volume. Among them, the most significant month on month changes were observed in coated plates and hot-rolled coils, with the export volume of coated plates increasing by 15.5% to 1.533 million tons, marking the fourth consecutive month on month growth; The export volume of hot-rolled coil plates decreased by 14.5% month on month to 1.707 million tons, but it is still at a stage high. The export volume of medium plates, steel bars, and thick steel plates has more than doubled year-on-year and is at a stage high. Among them, the export volume of steel bars is the highest level since 2008, mainly exported to Myanmar, Mongolia, and Laos. The export volume of pipes increased by 7.7% month on month to 958000 tons, with the export volume of welded steel pipes increasing by 18.5% month on month.

In April, China exported 376000 tons of stainless steel, an increase of 7.7% month on month, accounting for 4.7% of the total export volume; The average export price was 3455.7 US dollars per ton, a decrease of 3.2% month on month; It is mainly exported to India, South Korea, Türkiye and Russia, accounting for 48.7% in total.

Partition situation

According to customs data, in April, China exported 2.137 million tons of steel to ASEAN, a decrease of 18.7% compared to the previous month. Among them, exports to Vietnam fell from a high level, with a month on month decrease of 44.3% to 577000 tons. Exporting 425000 tons to the European Union, an increase of 61.7% month on month, mainly from exports to Italy, with a significant increase of 2.57 times month on month to 148000 tons. In April, the volume of exports to Türkiye ranked second among the major export destinations. Since the beginning of this year, although China's exports to Türkiye have continued to rise, the month on month growth in April has narrowed. The Ministry of Economy of Türkiye announced the imposition of tariffs on plates from May 1, which may play a role in restraining China's exports in the short term.

Export situation of primary products

In April, China exported 585000 tons of primary steel products (including steel billets, pig iron, Direct reduced iron, and recycled steel raw materials), including 578000 tons of steel billets.

Import situation of steel products

In April, China's steel import volume further decreased, with three consecutive month on month declines. Imports are mainly made of sheet metal, with the reduction mainly coming from hot-rolled coils, and imports from Japan have been declining year-on-year for the 15th consecutive month. The specific situation is as follows:

Classification situation

According to customs data, in April, China imported 500000 tons of sheet metal, a decrease of 15.6% month on month, accounting for 85.4%. The reduction mainly comes from hot-rolled coils, with a decrease of 36.5% month on month to 78000 tons, which is at a historical low. Among them, the hot rolled thin and wide steel strip decreased by 47.5% and 67.2% compared to the same period last year, while the medium thick and wide steel strip decreased by 35.3% and 66.2% compared to the same period last year, respectively, ranking first among the main steel varieties. In addition, the import volume of pipes increased by 6.4% month on month to 16000 tons, with seamless steel pipes and welded steel pipes increasing by 7.8% and 3.8% month on month, respectively.

In April, China imported 122000 tons of stainless steel, a decrease of 1.0% month on month, the lowest level since April 2020, accounting for 20.9% of the total import volume; The average import price was $3526.2 per ton, a decrease of 4.2% compared to the previous month. The reduction mainly comes from stainless steel billets. Affected by the production reduction of Delong Stainless Steel in Indonesia, the import of stainless steel billets in April decreased by 74.0% month on month and 96.8% year on year, respectively.

Partition situation

In April, China imported a total of 353000 tons from Japan and South Korea, a decrease of 19.0% month on month, accounting for 60.3% of the total imports. Among them, the import of 180000 tons from Japan decreased by 24.6% month on month, marking the 15th consecutive month of year-on-year decline, which is related to the significant decline in the import volume of hot-rolled thin and wide steel strips in China. Imports from ASEAN reached 105000 tons, a decrease of 7.2% month on month, with only Indonesia's imports increasing by 13.8% month on month to 93000 tons.

Import situation of primary products

In April, China imported 368000 tons of primary steel products (including billets, pig iron, Direct reduced iron and recycled steel raw materials), down 7.1% month on month. Among them, 244000 tons of imported steel billets increased by 58.9% month on month.

Future outlook

The supply and demand in overseas markets are weak. According to customs data, in April, the global (excluding China) crude steel production recorded by the World Steel Association had a negative year-on-year growth for the 14th consecutive month. However, as the impact of the epidemic and geopolitical conflicts on the global industrial chain gradually weakened, the year-on-year decrease in overseas supply narrowed and the month on month rebounded. Russia, Ukraine, and other CIS countries in China achieved their first positive year-on-year increase in crude steel production since February 2022 in March of this year. In addition, affected by high inflation and turmoil in the banking industry in Europe and the United States, the decline in global economic growth has led to weak external demand. JPMorgan Chase's global manufacturing PMI (Purchasing Managers'Index) has been in a contraction range for eight consecutive months. As a major destination for China's steel exports, the Southeast Asian Iron and Steel Association predicts that the steel demand of the six ASEAN countries will increase by 3.4% year-on-year to 77.6 million tons in 2023. However, the steel supply brought by new steel projects may exceed the steel demand, and China's steel investment in ASEAN will also have a substitute effect on domestic resources, putting some pressure on China's steel exports.

Domestic steel production is stronger than consumption, and steel prices continue to decline. Since April, export quotations have generally been lowered, and the price difference between domestic and foreign markets has expanded. Coupled with the recent RMB breaking the "7" mark again, steel companies have increased their willingness to export. It is expected that short-term steel exports may maintain a certain level of resilience, but the overall trend is under pressure and downward. (Translated from: China Metallurgical News)