Chinese steel wire rod exports may face tough times ahead

BEIJING (Scrap Monster): The Chinese ordinary steel wire rod exports dropped during the month of August this year. However, the cumulative exports during the initial eight months of the year stood at significantly higher levels. The exports for the whole year 2014 are expected to surpass the previous year totals. Meantime, the export prices of Chinese wire rods dropped significantly during August.

According to government data, the country’s exports of ordinary steel wire rods totaled 844 thousand tonnes (t/t) during August this year, down 6.1% when compared with the exports during the same month a year ago. However, the combined exports during the period from January to August totaled 6, 775 t/t, up 25.6% when compared with the exports during the corresponding eight-month period last year.

Imposition of AD duty and other import restrictions by several countries are likely to limit the Chinese exports in future. Nevertheless, Chinese wire rod exports for the whole year 2014 are forecast to exceed 10 million tonnes.

Incidentally, the Chinese exports of wire rods have improved since 2010. The exports increased from 2, 358 t/t in 2010 to 3,014 t/t in 2011. In 2012, it further increased to 5, 612 t/t. The country had exported 8, 028 t/t in 2013.

Meantime, the Chinese wire rod output for the month of August this year were 1.3% higher over the previous year at 13, 290 t/t. The cumulative production during January to August this year jumped higher by 5% to 124.9 million tonnes.

Also, the export prices of Chinese steel wire rods have dropped below $500 CFR.