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      Steel exports driven by multiple factors

      2014-12-05 14:02 Global Times Web Editor: Qin Dexing
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      China has become the world's largest steel exporter in both volume and value terms, a distinction which represents both the achievements of domestic mills as well as a sign of continued trouble.

      During the first three quarters of this year, Chinese producers churned out 618 million tons of crude steel and 839 million tons of finished steel products, up 2.43 percent and 5.02 percent year-on-year respectively.

      China's steel exports have registered strong growth as well. Specifically, overseas steel shipments reached 8.51 million tons and 8.55 million tons respectively in September and October, representing increases of 73.1 percent and 68.6 percent year-on-year.

      More broadly, China's exports as a percentage of the total global steel trade rose from 4.8 percent in 2000 to more than 15 percent in 2013.

      There are several reasons behind this considerable surge in Chinese steel exports.

      First of all, Chinese producers have little choice but to tap foreign markets thanks to severe overcapacity and lackluster demand at home. Second, the global competitiveness of Chinese steel products, especially rolled products, has improved greatly. Third, economic recovery in the US and other Western nations has bolstered demand for steel, including steel from China.

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