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Print[Ferro-Alloys.com] China is ramping up its global exports of cheap steel, sometimes at a loss, as bulging stocks of the alloy give way to a worsening domestic demand picture for the commodity consuming giant.
Slowing construction and industrial activity has hit Chinese steel demand and prices hard in the last few weeks, prompting market participants to export more aggressively than ever, even to markets such as the Middle East and North Africa where it doesn't usually sell.
Major steel products in China are being sold below cost following a market slump that has lasted more than four months, the country's steel industry association said.
"The Chinese have been offering everywhere in the last three to four weeks, in whatever market they can reach and they can reach almost everywhere because their steel price has dropped dramatically," said a Russian steel trader.
"They are offering to Latin America, they are offering to Africa, they are offering to the Middle East, they are offering to Iran, even to a part of Russia."
Chinese steel exports to North Africa and the Middle East, were at a discount of USD40-50 per tonne against Turkish and Russian steel, up from a discount of USD20-30 about two weeks ago, traders said.
Turkish rebar, for example, was sold at around $610 delivered to customers in the Middle East this week, while Chinese exports were at around $560 on the same basis, according to price provider Platts SBB.
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