China’s steel exports surged to an unprecedented level last month, capping a record-breaking year in which shipments defied mounting trade pressures and expectations of a slowdown. Data released by China’s General Administration of Customs showed that steel product exports rose to 11.3 million tonnes in December, surpassing the all-time high previously recorded in 2015.
On an annual basis, China’s total steel exports increased by 7.5% year-on-year to around 119 million tonnes last year, marking a new historic record, according to Germany’s dpa news agency.
The strong performance came despite a global wave of protectionist measures, including the imposition of anti-dumping duties on Chinese products in several markets. Nevertheless, Chinese steelmakers managed to navigate these constraints by shifting toward markets with fewer barriers—particularly in the Middle East—and by increasing exports of semi-finished products that are not subject to the same restrictions.
Exports helped offset weaker domestic steel demand in China, as the prolonged property sector crisis continues to weigh on the market. Uncertainty remains over whether Beijing’s recent efforts to curb exports—most notably a new steel export licensing system—will meaningfully restrain growth this year or merely represent an administrative adjustment.
He Jianhui, an analyst at SDIC Futures Consulting, said that seasonal weakness in domestic demand boosted exports in December, while exporters also accelerated shipments ahead of the implementation of the new licensing regime. He expects the impact of the licensing system to be limited, noting that overseas buyers are likely to absorb the costs given already low domestic steel prices.
Iron Ore Imports
Meanwhile, China’s imports of iron ore—the key raw material for steelmaking—also reached record levels last year. Iron ore imports rose by 1.8% to a historic high of about 1.26 billion tonnes, marking the third consecutive year of growth, according to customs data.
However, the build-up of iron ore inventories at ports has become more pronounced in recent months, indicating that demand from steel mills has begun to soften. In terms of prices, iron ore futures in Singapore were steady at $108.3 per tonne at 1:33 p.m. local time, while yuan-denominated futures in Dalian and steel futures in Shanghai recorded gains.
