Recently, in a recent report, China Steel Association predicted that due to a variety of unfavorable factors, domestic steel exports will be more difficult in 2011.
According to the analysis by the China Steel Association, the unfavorable factors for domestic steel exports in 2011 included the rapid rise in the purchase cost of raw fuel imports, the increase in steel production costs, and the weakening of China’s steel export competitiveness; the long-term depreciation of the US dollar and the appreciation of the The devaluation will also affect the export willingness of China's iron and steel enterprises and the competitiveness of steel exports.
In addition, as of July 2010, China has cancelled the export tax rebate for most steel products, and policy has discouraged the export of steel products; while trade protectionism has again risen in various countries, trade barriers and restrictions have deteriorated the export environment of China's steel exports, and weak external demand. Anti-dumping investigations in countries such as India will also affect domestic steel exports.
China Steel Association data show that in 2010, China exported 425.5600 tons of steel, an increase of 73.02%. Although the year-on-year increase was significant, the total amount of steel exports has dropped to less than 10% of the total crude steel production that year. In the past few years, "export steel can not exceed 10% of the total crude steel production capacity", and has become the bottom line for policy regulation of steel exports.
China Steel Association analyzed that thanks to the growth of domestic demand in Japan and South Korea and China's steel price advantage, China's steel exports to Japan and South Korea increased significantly in 2010.
The data shows that since the China-ASEAN Free Trade Area was formally operational in January 2010, China exported 8.285 million tons of steel to ASEAN countries, an increase of 78.79% year-on-year, accounting for 19.47% of China's total steel exports. In addition, the steel trade circle in Northeast Asia and the China-ASEAN Free Trade Area gradually matured in 2010, which promoted the export of China's steel products.