Chinese Steel Export Increased by 20.7% in July 2015
According to the latest data released by General Administration of Customs of the PRC, steel export from China was 9,730,000 tons in July 2015, 840,000 tons up based on the data in June, which increased by 20.7% year-on-year. Chinese steel export was 62,130,000 tons totally from January to July, increased by 26.6% year-on-year.
MPI’s comments: Data in July represents export growing since the beginning of 2015. It will be helpful for Chinese steel companies to relieve operation difficulties temporarily against serious overcapacity of domestic steel industry by means of overseas market promotion. However Chinese steel export was still suffered a lot from trade friction.
Depreciation of RMB Imposed Limited Impact on the Steel Industry
Complying with improvement of reference rate of Yuan against US dollar decided by the People’s Bank of China in recent times, the reference rate was set at 6.2298, decreased by 1136 points based on 6.1162 one day before, the lowest since April 25th 2013. The depreciation of Yuan may be expected to be a trend due to this measure.
MPI’s comments: Although iron ore import price grow up caused by Yuan depreciation, the iron ore import will not be influenced greatly due to inelastic demand of imported ore and no alternative supply channel in the Chinese market. However, Chinese steel export will not be boosted significantly by Yuan depreciation due to existing large number of steel export from China as well as constant trade friction to be dealt with.
