Published on August 27, 2024
China’s steel industry has remarkably grown in the first seven months of 2024. Between January and July, steel exports surged by 21.8% compared to the same period in 2023, reaching 61.23 million tons. This significant increase underscores China’s pivotal role in the global steel market and its growing influence as a major exporter.
Export and Import Dynamics
While steel exports saw a substantial rise, imports of steel products into China experienced a decline. From January to July 2024, steel imports fell by 6.7% year-on-year, totaling 4.12 million tons. This decline in imports reflects China’s increasing self-sufficiency and the competitiveness of its domestic steel production.
In contrast, iron ore imports, a critical raw material for steel production, rose by 6.7% year-on-year, amounting to 713.77 million tons. This increase highlights the robust demand for raw materials to support the country’s expanding steel production.
Monthly Trends and Pricing
July 2024 saw a notable decrease in steel exports compared to June, with a 10.5% drop, bringing the total to 7.83 million tons. Despite this monthly decline, the overall trend for the year remains positive. In July, the average steel export price was $790.1 per ton, marking a 2.3% increase from the previous month. This rise in export prices indicates a strong market demand and the ability of Chinese producers to command higher prices for their steel products.
Future Projections
Looking ahead, indirect steel exports from China are expected to continue their upward trajectory. Predictions indicate an increase from 116 million tons in 2023 to 127 million tons in 2024, representing a 9% year-on-year growth. Factors contributing to this growth include rising automobile exports, shipbuilding activities, and the demand for equipment driven by the global energy transition and infrastructure projects.
Conclusion
China’s steel industry is poised for continued growth, driven by strong export performance and increasing demand for raw materials. The significant rise in steel exports from January to July 2024 highlights the country’s strategic position in the global steel market. As China continues to expand its production capabilities and enhance its export strategies, it will likely maintain its dominance in the industry, shaping global steel trade dynamics for the foreseeable future.