Chinese November steel exports rose to the highest level this year at 2.87Mt.
The amount is up 6% from 2.71Mt in October and more than double the low in May. The increase in exports and a 12% decline in total imports caused net exports to increase 42% for the month.
Steel Market Intelligence said it believed record production levels in China have prompted mills to seek more export opportunities as their inventory levels rise in the wake of relatively weak domestic demand.
It added China’s steel mills had repeatedly ignored Beijing’s attempts to reign in output.
But the tide may be turning – November average daily production was down 5%. Steel Market Intelligence said: “We believe the economics of rising raw materials prices and high inventory levels are finally catching up with Chinese steelmakers and the production decrease is encouraging.”