Chinese exports of steel billets have almost reached a record
China has increased exports of semi-finished steel products to almost record levels, filling a niche created after a sharp decline in shipments from Iran, which was one of the largest suppliers of these products before the war.
This is reported by Bloomberg, SilkBridge reports.
The agency notes that Iran was an important exporter of steel billets and slabs. However, the US and Israeli strikes on the country's metallurgical assets, as well as the blocking of the Strait of Hormuz, practically stopped these supplies and opened up opportunities for China.
According to customs data, exports of semi–finished products from China rose to 1.64 million tons in April, slightly below the record high of 1.75 million tons recorded in August last year. The main supply routes were Indonesia and Thailand, where enterprises importing steel slabs for rolling are located.
"Of course, Chinese semi–finished products are replacing Iranian ones this year," said Thomas Gutierrez, an analyst at Kallanish Commodities.
According to him, Chinese steel companies operating in Southeast Asia also benefit from the situation.
Iran's large steel industry has been subjected to a series of attacks from the United States and Israel. The country's largest producer, Mobarakeh Steel, was forced to stop production, and Khuzestan Steel, one of the key producers of steel blanks, also suffered from strikes. Maritime exports of products from Iran have largely stopped.
The growth in exports of semi-finished steel products has become one of the key trends for the Chinese steel industry over the past two years. Manufacturers are facing both a slowdown in domestic demand and a wave of trade restrictions around the world, which are mainly directed against finished steel products.