For the first time in seven years, China has been reducing exports
The indicators for the period from January to November this year showed a decline in the export of steel. According to customs data, which were published on Thursday, the reduction was one percent. In the digital equivalent, the same figure was one hundred million seven hundred thousand tons of steel.
These data deprive the Celestian of the opportunity to set a new record for deliveries abroad. Prior to this, since 2009, China has increased metal exports annually.
In 2015, the figure for the supply of steel was almost one hundred and thirteen million tons.
Ironically, the drop in sales abroad was not due to numerous anti-dumping investigations. The main reason for the decrease in exports of rolled metal was the growth of domestic demand.
Over the past month, compared to the same period last year, the decline was fifteen percent. The number of deliveries has become beyond the DPRK - 8.1 million tons of steel. Although, relative to October, last month, an increase in exports by 5.5 percent.
In the previous four months of this year, there was a constant decrease in exports. The indicator for October was the lowest since the spring of 2015.
Over the past year, the export sales of steel from China amounted to a record one hundred and thirteen million tons. To reach such an indicator this year is almost impossible. Since, to achieve this result, Chinese manufacturers need to export more than twelve million tons.
In addition to the above factors, the growth of prices in the domestic market also influenced exports. For this year, steel grew in price by eighty-seven percent. As for the reinforcement - the price for it increased by fifteen percent. In addition, this year was characterized by a record increase in the consumption of iron ore within the region.
Elections in the United States significantly influenced the price policy in the world steel market. China was no exception. So, for the "post-election" period in the Middle Kingdom, steel prices rose by forty percent. Therefore, until today there is a threat of speculation in the metal market in China. In this regard, the largest trading exchanges restricted trade in ore and metals.
Expansion of lending and growth of government spending on infrastructure are expected to further increase domestic demand.
Even such a small reduction in Chinese exports can help restore the global market. Because, cheap Chinese exports have become one of the causes of the blue crisis in the steel market.
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