China Steel Export Hits 23-Month High

Chinese steel export increased by 12.0% to 5.23 million tonnes in May from April, which was the highest level since June 2010, announced by Chinese government on Sunday. The export increased after the volume decreased to less than 5 million tonnes in April from more than 5 million tonnes in March when the steel output kept historical high in May despite of slow domestic demand. Chinese steel makers try to increase the higher priced export than domestic market price.

The export increased by 9.9% in May from a year earlier, which was the first increase in 2 months. The export increased by 10.1% to 22.04 million tonnes in January-May from same period of 2011.

Chinese daily raw steel output hit record 2.05 million tonnes in early May, according to China Iron and Steel Association (CISA). The makers try to increase the production for lower cost and higher sales. Under slow domestic demand, some of the makers expand export with higher price than domestic market.

The averaged export unit price was FOB US$ 958 per tonne in May, which was 1.3% higher than April average and increased for 2 months in a row.

The import increased by 16.8% to 1.32 million