Alacero Summit 2025: John Lichtenstein highlights the growing problem of indirect steel exports from China
At the 2025 Alacero Summit, John Lichtenstein, managing partner of World Steel Dynamics, made a compelling assessment of China's growing global presence in steel and high-capacity manufacturing, highlighting the rapidly growing problem of indirect steel exports.
In his presentation, Lichtenstein explained how China's global indirect steel exports — steel used in manufactured goods — have exceeded direct steel exports since 2017. These exports have increased dramatically since the pandemic and have continued to accelerate in recent years, driven in particular by a sharp increase in car exports from China.
The key structural shift noted during the presentation is the evolution of indirect steel exports from China from cheaper general-purpose steel products to more expensive goods for the automotive and mechanical engineering industries. It is estimated that indirect steel exports related to the automotive industry alone will reach 25% of total indirect steel exports in 2025, significantly increasing competitive pressure on steel-consuming industries worldwide.
Liechtenstein stressed that the scale and growth rate of indirect steel exports from China pose a serious and growing threat to the steel industry and downstream production ecosystems. He called for continuous and structured monitoring of indirect steel imports, not only by product type, but also by its role in local supply chains.
This includes understanding whether imports consist of components, end products, or production capital assets, how they are integrated into domestic production chains, who owns importing enterprises, and whether products are intended for the domestic market or are being re-exported.
The presentation also emphasized the importance of a thorough assessment of Chinese foreign direct investment (FDI). While some investments can contribute to industrial development, others can weaken the value chains of domestic steel producers if they do not align with long-term industrial strategies.
In conclusion, Liechtenstein called on Governments to ensure that incentives for foreign investment go beyond key indicators such as the total cost of investment or job creation. In his opinion, these criteria should be applied along with a clear strategy for strengthening domestic production supply chains, including those that depend on steel production.
John Lichtenstein's full speech is available on YouTube.: