Brazil, China steel exports rise
Wednesday, 7 October 2009
NEW DELHI, Oct 6 (Commodity Online): Brazil and China witnessed major rise in steel exports. This trend is expected to continue in both the countries.
According to reports in the media, in August China exported finished steel products of 2.08 million tonnes, which is a rise of 14.9 per cent or by 0.27 million tonnes from 1.81 million tonnes in July.
This is the third consecutive month that sees steel exports increase.
Chinese prices are now in the line with or even under that of global ones. Chinese mills are offering aggressively about their export materials. During January to July this year the amount of Chinese steel exporters has increased to 12,648 from last year's 11,437 up by 10.6 per cent YoY.
China's current export destinations are mainly limited in Asia, particular South Korea and other Asian neighbors. Comparatively, South Korean market was much better than other international ones during the past few months, given traders are rebuilding their stocks after the destocking.
In Indian market, Chinese materials are competing with low-priced products from Russia and Ukraine. Supported by the Indian government's stimulus package, Indian steel consumption is likely to grow 8-10 per cent this fiscal year, but the country's steel output is insufficient to meet the demand, which means the Indian steel import may see further increase in the next few months.
Vietnam, though is importing HRC from China, the tonnage is very small due to the soft local demand and capital tightness. The exports to countries in Central Asia and Africa have increased by 92.5 per cent to 883 per cent but these markets still are not stable and demand more time to develop.
Brazil's exports of flat rolled steel products rose by 78.9 per cent YoY September to $234 million with India, Argentina and Taiwan as the main destinations.
However, exports of ferroalloy products decreased 38.4 per cent YoY in September to $138 million. Sales of smelted products fell by 67.6 per cent YoY to $109 million. Ferroalloy products went mostly to China, Benelux nations and Singapore, while the majority of smelted goods went to China, Thailand and the US.
Sales of semi finished iron and steel products fell by 64 per cent YoY to $174 million in September, mostly heading to China, South Korea and the US.
Ukraine steel industry reduced finished roll output 27 per cent YoY in January to September to 19.306 million tonnes.
The industry cut roll output 34 per cent YoY in January to July and 30 per cent in January to August, so the latest figures indicate that the severe decline in the industry is still slowing. Crude steel production plummeted 32 per cent in the nine months to 21.68 million tonnes and pig iron fell 29 per cent to 18.753 million tonnes.
The country produced 1.201 million tonnes of steel pipes down by 37 per cent YoY. Iron ore concentrate production fell 19 per cent to 39.164 million tonnes; prepared iron ore fell 25 per cent to 40.397 million tonnes, including pellets 15 per cent to 14.733 million tonnes and sinter ore 29 per cent to 25.664 million tonnes; and crude iron ore was down 22 per cent to 46.948 million tonnes.
According to reports in the media, in August China exported finished steel products of 2.08 million tonnes, which is a rise of 14.9 per cent or by 0.27 million tonnes from 1.81 million tonnes in July.
This is the third consecutive month that sees steel exports increase.
Chinese prices are now in the line with or even under that of global ones. Chinese mills are offering aggressively about their export materials. During January to July this year the amount of Chinese steel exporters has increased to 12,648 from last year's 11,437 up by 10.6 per cent YoY.
China's current export destinations are mainly limited in Asia, particular South Korea and other Asian neighbors. Comparatively, South Korean market was much better than other international ones during the past few months, given traders are rebuilding their stocks after the destocking.
In Indian market, Chinese materials are competing with low-priced products from Russia and Ukraine. Supported by the Indian government's stimulus package, Indian steel consumption is likely to grow 8-10 per cent this fiscal year, but the country's steel output is insufficient to meet the demand, which means the Indian steel import may see further increase in the next few months.
Vietnam, though is importing HRC from China, the tonnage is very small due to the soft local demand and capital tightness. The exports to countries in Central Asia and Africa have increased by 92.5 per cent to 883 per cent but these markets still are not stable and demand more time to develop.
Brazil's exports of flat rolled steel products rose by 78.9 per cent YoY September to $234 million with India, Argentina and Taiwan as the main destinations.
However, exports of ferroalloy products decreased 38.4 per cent YoY in September to $138 million. Sales of smelted products fell by 67.6 per cent YoY to $109 million. Ferroalloy products went mostly to China, Benelux nations and Singapore, while the majority of smelted goods went to China, Thailand and the US.
Sales of semi finished iron and steel products fell by 64 per cent YoY to $174 million in September, mostly heading to China, South Korea and the US.
Ukraine steel industry reduced finished roll output 27 per cent YoY in January to September to 19.306 million tonnes.
The industry cut roll output 34 per cent YoY in January to July and 30 per cent in January to August, so the latest figures indicate that the severe decline in the industry is still slowing. Crude steel production plummeted 32 per cent in the nine months to 21.68 million tonnes and pig iron fell 29 per cent to 18.753 million tonnes.
The country produced 1.201 million tonnes of steel pipes down by 37 per cent YoY. Iron ore concentrate production fell 19 per cent to 39.164 million tonnes; prepared iron ore fell 25 per cent to 40.397 million tonnes, including pellets 15 per cent to 14.733 million tonnes and sinter ore 29 per cent to 25.664 million tonnes; and crude iron ore was down 22 per cent to 46.948 million tonnes.