It is reported that Steel exports in Shangdong ports decrease by more than 30% in July, as government effort to withdraw export rebate has taken effect since July 15th.

According to statistics from Qingdao Customers, steel exports in Shangdong ports reach 2.184 million tonnes in the first 7 months, 1.5 times the amount of a year ago with a doubled value of USD 1.75 billion. Since March 2009, monthly steel exports in Shangdong ports have seen remarkable rebound, hitting record highs in 4 consecutive months from 2009. Exports in June count to 415,000 tonnes up by 200%YoY and 1.7%MoM while exports in July see a sharp high drop at 289,000 tonnes up by 150%YoY yet down 30.3%MoM.

Steel industry is encountering increasing operating risk due to rising raw material cost. Steel prices in domestic market have continued to decline since late April, remaining volatility at low level. Owing to week demand, steel enterprises confront dual pressure of high cost and dim price, with increasing number of steel enterprises take maintenance as the government further promotes output limitation.

According to China Iron and Steel Association, daily output of crude steel in July has dropped more than 5%, due to government’s regulation on real estate sector.

(Sourced from MySteel.net)
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