TEHRAN, June 06 -Chinese steelmakers are seeking new export destinations in Africa and South America as shipments to their biggest overseas buyers in Southeast Asia fall by double digits, with new U.S. trade actions threatening to kill off some markets entirely.
TEHRAN, Young Journalists Club (YJC) -Chinese steelmakers are seeking new export destinations in Africa and South America as shipments to their biggest overseas buyers in Southeast Asia fall by double digits, with new U.S. trade actions threatening to kill off some markets entirely.
China, the world’s largest maker, consumer and exporter of steel, is finding it has fewer export options. Washington last week imposed hefty tariffs on major steel exporters to the United States - Canada, Mexico and the European Union - prompting retaliatory measures.
The global tariffs Washington kicked off in March were mainly aimed at curbing Chinese steel imports, which U.S. steelmakers also believe are being routed through other countries before landing in the United States.
Last month, the U.S. Commerce Department slapped heavy import duties on steel products from Vietnam it says originated in China, hitting China’s No. 2 export market after South Korea, and a major outlet for sales by Chinese mills that own warehouses in Vietnam.
Vietnam said its steel companies would likely stop buying the metal from China to avoid having their shipments to the United States penalized.
“It is increasingly apparent that export opportunities for Chinese producers are becoming increasingly limited, owing to existing trade legislation, lodged by many parts of the world,” said Chris Jackson, analyst at UK-based steel consultancy MEPS International Ltd.
While China’s steel exports hit an eight-month high in April, shipments for the first four months of the year dropped by 20 percent, although falling only 2.5 percent in value.
To view a graphic on China's steel production and exports, click: reut.rs/2Jt4BJT
Shipments to China’s top markets, including Vietnam and South Korea, have dropped by double digits since last year, reflecting stiffer competition from other suppliers like Russia.
Anti-dumping duties imposed by Southeast Asian buyers like Thailand, Vietnam, Indonesia and Malaysia on Chinese steel exports have also slowed shipments from Beijing.
‘CROWDED’ OUT
“The Southeast Asian market is getting crowded. More and more people are seeking to find new markets, especially in South American and African countries,” said Steven Yue, sales manager at Hebei Huayang Pipeline Co, a Chinese exporter of steel pipes.
“We plan to work harder to develop the South American and African market from the second half of this year.”
South America and Africa accounted for a combined 8 percent of China’s steel exports last year, and shipments to some nations there have surged this year. Southeast Asia accounted for a quarter of China’s exports last year, but were down 45 percent from the year before, and slipped by a third in the first quarter of 2018, according to data tracked by MEPS.
Exports to Nigeria, Africa’s biggest economy and the continent’s top buyer of Chinese steel, rose 15 percent in the first quarter, and shipments to Algeria, the fourth-largest economy, nearly tripled. In South America, Chinese shipments to Brazil jumped 40 percent and climbed almost tenfold to Bolivia.
To view a graphic on China steel exports by region, click: reut.rs/2Lmy8SF
Source: Reuters
Your Comment