IRON and STEEL
According to Chinese customs nation’s finished steel exports plunged by 8% Y-o-Y to 69.47 MnT in CY18 as compared to 75.41 MnT in CY17.
Chinese mills raised export offers following gains in domestic market during Jan-Sept’18. Competitive offers from CIS nations shifted buying interest away from China which lead to fall in export volumes of steel from China in CY18. However prices dropped significantly from the month of October over weakening market sentiments in domestic market.
Also strict production cuts to curb excess production capacities and to control pollution had shifted the focus of Chinese steel mills in domestic market over exports.Also other factors like USA China trade war which started in the month of March followed by currency depreciation has resulted to lower volumes of steel from China.
Chinese HRC exports offers in CY18 vs CY17 - As per the data maintained with SteelMint nation’s HRC export offers on an average basis stood around USD 550/MT FoB China which was USD 502/MT FoB basis in CY17.
Nation increased steel exports by 6% M-o-M in Dec’18 - On monthly basis, China’s steel exports increases by 6% to 5.556 MnT in Dec’18 in contrast to 5.25 MnT in Nov’18.Thus export volumes increased after falling from two consecutive months over increased booking amid significant fall in Chinese steel prices. On yearly basis also nation’s finished flat export volumes inch down by 2% to 5.5 MnT in Dec’18 as compared to 5.67 MnT in Dec’17.
Chinese steel imports in CY18 vs CY17- Nation’s steel imports stood at 12.86 MnT in CY18 fell by 4% as compared to 13.36 MnT in CY17.However the same on yearly basis remained stable in Dec’18 against Dec’17.
Meanwhile on monthly basis nation’s steel imports stood at 1.006 MnT in Dec’18 lower by 5% against 1.06 MnT in Nov’18.
Tanzania has given Barrick Gold-owned Acacia Mining (LON:ACA) until March 30 to stop waste water pollution at its North Mara mine or face a shutdown, but the country’s No.1 gold producer said Friday a brief spill affecting the operation has already been halted.
SteelMint has heard from its sources that, North China's Tangshan, the country's largest steel-producing city has launched ‘Level II Emergency Response to Heavy Pollution Weather’.
Last week, the Chinese Ministry of Ecology and Environment (MEE) announced in a statement that it will adopt more targeted and efficient policies as part of its campaign against pollution in the year 2019.
The graphite electrodes (GE) prices in China which were on a rising spree since the latter half of last year amid structural supply-side changes in China and promotion to electric arc furnaces for steel production are now facing a downtrend.
Chinese mills have resumed billet exports owing to falling prices in domestic market, but we do not see volumes to reach 2015 levels.
As per market sources,Chinese finished steel exports in first eleven months of CY18 (Jan-Nov) stood at 63.91 MnT fell by 8% against 69.74 MnT in same time frame of previous year