Chinese Steel Exports to Australia Plummet
Global Times reported that China's steel shipments to Australia have dwindled by more than 50% in recent months and the trend is set to further accelerate, as China takes more measures to cut output and restrict exports. Industry insiders said that China's shrinking steel supply, against the backdrop of deteriorating bilateral relations, will likely lead to a steel shortage for the recovering Australian economy, which is about to embark on a massive infrastructure plan. They said "As Australia reboots its economy, demand for steel is set to further jump with the rollout of more housing and infrastructure construction. That, combined with dwindling imports from China, will only widen the supply gap, which no other country could fill.”
A steel exporter based in Tangshan told the Global Times that steel exports to Australia had plummeted recently, although the country is not his main export destination. He said "Overall steel exports have halved in recent months, but the export slump to Australia was one of the fastest.”
Another trader told the Global Times that the company's exports to Australia are very small and have continuously declined, as domestic output has been gradually controlled.
Australia’s steel imports from China account for 30% of its total steel imports, while Australia only accounts for less than 1% of China's steel shipment.