In 2023, Chinese steelmakers will export approximately 90 million tons of steel.
China's steel exports have grown to levels that are disrupting international markets and could spark new trade disputes. writes about this in a column for Nikkei Asia .
As noted, in 2023 China plans to export about 90 million tons of steel. These volumes are approaching more than 110 million tons in 2015, when anti-dumping measures spread around the world.
Chinese steel has disrupted the Southeast Asian market, a key export destination for Chinese steelmakers, the observer said. In particular, in September of this year, exports of Chinese metal products to Thailand increased by approximately 60% year-on-year, deliveries to Malaysia increased by approximately 80% year-on-year, and to Vietnam - more than four times.
The Indonesian Iron and Steel Association lobbied the government to protect the industry, and Vietnam began to consider trade measures. In addition, the countries of South America and the Middle East, which also consume large volumes of steel from China, are increasing their vigilance.
At the same time, steel production in China is showing signs of slowing down, and prices for steel products are falling. However, excess supply is redirected to the international market, which is facilitated by the weak yuan.
As China ramps up steel exports, it is shifting its focus to high-value-added products, putting pressure on steelmakers in developed countries such as Japan. Shipments of Chinese steel products to this country grew by 15% year on year in January-October, which is a modest increase compared to Southeast Asian markets. But exports of some products, such as hot-dip galvanized sheets, are hovering around historical highs.
At the end of October, Turkey moved to introduce anti-dumping duties on hot-rolled steel, and this applies to steel not only from China, but also from India, Russia and Japan.
Rising Chinese steel exports have also drawn attention to the country's excess capacity. The government has told the Organization for Economic Co-operation and Development's steel committee that China will make its own efforts to resolve the problem.
Let us recall that Chinese metallurgical companies in January-November 2023 increased the export of metal products by 35.6% compared to the same period in 2022 – up to 82.66 million tons.
