China steel exports increase to achieve new high quarter

China steel exports increase to achieve new high quarter

China's steel exports have surged to unprecedented levels in the second quarter of 2025, according to the latest data from China Customs. The data reveals that exports of steel and steel-intensive manufactured goods have reached new highs, marking a significant milestone in the country's steel industry.

The increase in exports is driven by a combination of factors, including robust demand from key trading partners and the strategic positioning of China's steel market in the global economy. Despite recent headwinds such as the potential for US tariffs on Asian countries, China's steel exports have remained resilient.

According to the data, China's steel exports to the 15 countries facing US tariffs accounted for about 30% of the country's total steel exports over January-May 2025. The value of all Chinese commodities to these destinations accounted for 24% of the total exports, highlighting the critical role these markets play in China's steel industry [1].

The Asian steel market has been under pressure due to sluggish demand and steel oversupply concerns, but China's exports have managed to maintain their momentum. Asian steel prices have been on a downtrend over the past two years, with the Platts HRC SS400 CFR Southeast Asia assessment standing at $447/mt on July 8, down 22.7% from Jan. 2, 2024 [1].

The influx of Chinese steel into the Asian markets has led to a surge in trade cases filed against Chinese steel products, with five cases affecting about 7.7 million mt/year of steel exports into these countries in the first five months of 2025 alone [1]. Despite these challenges, China's steel exports continue to grow, driven by the country's strategic focus on overseas markets.

The latest trade data from China also shows that imports are expected to rise by 1.3% year-over-year in June, while exports are expected to increase by 5.0%, contributing to a trade surplus of $109.00 billion [2]. This robust performance indicates that China's steel industry is well-positioned to capitalize on global market opportunities.

As the global steel market continues to evolve, China's steel exports are likely to remain a significant force, shaping the dynamics of the international steel trade. Investors and financial professionals should closely monitor these trends as they may impact the global steel market and related industries.

References:
[1] https://www.spglobal.com/commodity-insights/en/news-research/latest-news/metals/070825-impending-us-tariffs-on-asian-countries-threaten-demand-for-chinese-steel?utm_term=oil
[2] https://forex.tradingcharts.com/international_financial_news/china_trade_data_monday_07132025_0001.html