Amid the Ongoing Real Estate Crisis and Weaker-than-Expected Domestic Demand, China's Steel Exports Reach the Highest Level in Nearly 8 Years

Specifically, China's steel exports reached 9.89 million tons in March 2024, the highest level since July 2016 and up 25.35% year-on-year.

In the first quarter of 2024, China's steel exports totaled 25.8 million tons, the highest level since 2016 and up 30.7% year-on-year, according to data from the General Administration of Customs of China.

Meanwhile, China's steel product imports fell 9.26% to 617,000 tons in March 2024. For the entire quarter, total steel imports decreased by 8.6% to 1.75 million tons.

Iron Ore Imports Increase Slightly

In March 2024, China's iron ore imports increased by 0.5% year-on-year, driven by expectations of a demand recovery after the Lunar New Year holiday—a period when steel mills typically ramp up production.

The world's largest iron ore consumer imported 100.72 million metric tons of the metal in March 2024, according to data from the General Administration of Customs of China. This figure is higher than the 97.51 million tons in February 2024 and the 100.23 million tons in March 2023.

"This is a relatively high level of imports, likely stemming from expectations that steel mills would resume production in March 2024, thereby boosting iron ore demand," said Chu Xinli, an analyst at China Futures.

However, demand was much weaker than expected in March 2024, leading to high inventories and falling prices.

Iron ore inventories at major Chinese ports increased by 5.3% to 142.1 million tons at the end of March 2024, the highest level since late February 2023, while iron ore prices plummeted by 13%, according to data from Steelhome.

Total iron ore imports into China in the first quarter of 2024 reached 310.13 million tons, up 5.5% year-on-year, according to data from the General Administration of Customs of China.

Source: Vietstock