China Steel Export Increases by 73% in 2010

Chinese steel export increased by 73% to 42.56 million tonnes in 2010 from 2009, which increased for the first time in 2 years, according to Chinese authorities. The export increased in first half of 2010 due to speculative export before reduction in export tax refund in July. Chinese steel production is expected to increase in 2011 from 2010. However, the export in 2011 is estimated at around 3 million tonnes per month when Chinese government plans to increase the export of high grade products.

The export was high at 5.62 million tonnes in June 2010 and decreased to around 2.9 million tonnes per month after August due to limited output capacity from electricity cut by the government. The export decreased by 2.1% to 2.85 million tonnes in December from November and the averaged value increased by 1.1% or US$ 11 to US$ 1,021 per tonne, which increased for 2 months in a row. The steel import decreased by 6.8% to 16.43 million tonnes in 2010 from 2009.

Chinese iron ore import decreased by 1.4% to 618.63 million tonnes in 2010 from 2009, which decreased for the first time after 2000. While the increase in raw steel output, Chinese steel makers seemed to reduce the iron ore import due to higher cost price.