China's finished steel exports up by 16% y-o-y on rising global demand in Mar '21

China's finished steel export volumes have registered an annual increase of 16% in Mar '21 at 7.50 mn t, as per the data released by the General Administration of Customs, China (CGAC). The export volumes stood at around 6.48 mn t last year due to the dampened market sentiments on the back of the global spread of COVID-19 contagion.

In similar lines, the export volumes are up by a significant 53% contrasted against 4.90 mn t in Feb '21.

SteelMint gleans the factors that drove the increase in export volumes:

• Strengthening overseas demand-The global demand for steel continued to rise in the Mar '21 opening more exports opportunities for the steel producers in China.
  
  
• Surging HRC export offers-The export offers for steel products were on a rise from mid-Jan '21. Furthermore, the export offer for HRC (SS400) from Chinese mills witnessed a gradual increase from $690/t FoB basis at the beginning of Mar '21 to $840/t FoB basis towards the end. On a yearly comparison the average monthly HRC export offers have significantly moved up to $754/t FoB basis in Mar '21 contrasted against $449-450/t FoB basis in Mar '20, as per data maintained with SteelMint.
  
  
• Higher steel output in CY '21-The crude steel output of Chinese mills has improved this year by 12.9% to 174.99 mn t in Jan-Feb '21 in comparison with 155 mn t a year ago. The improving global steel demand with recovering economies and increased government investment in steel consuming sectors led to increased production and exports in CY '21.