China's steel exports in November rose 8.9% month-on-month to 4.4 million tons. According to preliminary data from customs, November exports fell 3.8% from a year earlier. Exports in January-November fell by 18.1% compared with a year earlier to 48.83 million tons.
The majority of Chinese steel exports in November were spot orders received in September and October this year, when domestic prices tended to decline.
Prices in the fall were under pressure from record production volumes and growing stocks at sellers. Steel production in China in September reached a record rate of 3.09 million tons per day. Steel production in January-October increased by 5.5% compared with a year earlier to 873.93 million tons. Steel stocks at enterprises belonging to the China Iron and Steel Industry Association (CISA) at the end of October amounted to 12.15 million tons, which is 5.9% more than a year earlier.
In December, steel exports from China may grow even more, amid growing spot orders for hot rolled coil and wire rod from Vietnam, Pakistan, South America and Africa. Most of the Chinese factories sold off their export quotas for the year in November and they have now started offering shipments for February or even March 2021.