China’s steel exports reached record levels in the second quarter, surpassing expectations despite increased trade barriers. Shipments of finished steel products, essential for industries ranging from construction to automotive manufacturing, totalled 30.7 million tonnes between April and June. This figure represents an 11 per cent increase compared to the same period last year, exceeding the previous quarterly peak recorded a decade ago during a period of substantial export volumes. The total tonnage for the first half of the year was 9 per cent higher than the previous period.
Despite protective measures implemented by various countries, including the US, Vietnam, India, and the European Union, Chinese exporters have managed to maintain strong export flows. These measures included US President Donald Trump raising blanket tariffs on steel. Strategies employed by Chinese exporters include shifting focus to products not subject to tariffs and identifying new markets for their goods.
Analysts at Macquarie Group, including Florence Sun, noted that China’s steel exports have exceeded expectations, even as the domestic steel market faces challenges due to weakness in the property sector. The resilience of Chinese steel exports highlights the country’s continued dominance in global steel production and trade, presenting both opportunities and challenges for other nations involved in the industry.
The increase in exports underscores China’s significant role as the world’s top steel producer, highlighting its capacity to adapt to and navigate complex international trade dynamics. China’s steel industry is a key part of its economy, manufacturing steel products for global construction, automotive, and appliance industries.
