Written by Amy Lev and Louis Jackson
Analysts and merchants said that steel exports in Beijing (Reuters) -scheduled for steel exports in the second quarter, threatened to exacerbate the abundance of the show at home.
Eight analysts and merchants, who also expect exports to be aggravated later in the year.
This would leave the second quarter shipments less than in the same period in 2024.
Steel exports were exposed with a double blow, as the tariff in Washington is suffocating the transportation trade, where the third countries are reformulating the Chinese steel to the United States, imposing major customers such as South Korea and Vietnam their own duties to avoid steel and then re -equipped in their markets.
“It is certain that the total exports will slip in the second quarter,” said the Chinese steel dealer, provided that his identity is not disclosed.
“One can look at the Middle East, Africa and South America as an alternative ports, but the problem can not absorb such a huge ability.”
Steel exports in China have helped compensate for partially weak demand from the destroyed real estate sector and any decline that will redirect steel to the homeland, which leads to the detention of prices, which leads to the erosion of the steel maker profit and educating its appetite for inputs such as iron ore.
The exports of the first quarter have reached the highest level since 2016, when Mills rushed to remove steel from the country before announcing the customs tariff that was reported at that time.
While the steel industry has long expected exports near the record to raise some violent reaction, the size of the protectionist launched by the trade war between Washington and Beijing surprised many.
The head of the company Baosteel, the head of the largest Follower, listed in China, said at the end of last month that the sector’s exports faced “unprecedented” pressure and more the remaining steel at home will increase the supply.
The external requests of a large Chinese source decreased between 20 % and 30 % last month against the previous month, according to April survey collected by mysteel consulting company.
There are also fears that the trade war that can outperform products that depend largely on steel, such as electric cars or home appliances, weakens the other main source of steel order outside the real estate sector.
“It takes some time to permeate this effect on the steel steel market, it is more likely to be reflected in the data in the second quarter when the demand for homes slowly slowed, which exacerbates the excessive state of the offer.”
