China faces the downturn of finished steel exports by 0.56 m t from July's 5.94 m t to 5.38 m t. This is the second consecutive month showing the decline of export volumes. However, it was still up by 1.52 m t from August 2006. The year-to-date total export figures, therefore, hit 45.08 m t for finished steel. Traders, without doubts, are quite sure the decrease of export could fall even further in September. There are two obvious factors affecting the dropping export issue: export taxes taking effect and the strong domestic market alluring mills' and traders' focus way from exporting. Most traders in northern China prefer to play in the domestic market.

Let's say, domestic HRC transactions remain healthy with around $591/ t, while export market tried very hard to get HRC prices of $590/t without success. Like finished products situation, semis exports fell by 560,000t from July, to 340,000t. Total semis exports in the first eight months of 2007 have reached 5.61m t, up by 10.9% over the same period of 2006. Few mills are not willing to export semis as it's not profitable with the 15% tax. Meanwhile, China imported 29.29m t of iron ore in August, taking the total for this year to 251.29m t.

Let's say, domestic HRC transactions remain healthy with around $591/ t, while export market tried very hard to get HRC prices of $590/t without success. Like finished products situation, semis exports fell by 560,000t from July, to 340,000t. Total semis exports in the first eight months of 2007 have reached 5.61m t, up by 10.9% over the same period of 2006. Few mills are not willing to export semis as it's not profitable with the 15% tax. Meanwhile, China imported 29.29m t of iron ore in August, taking the total for this year to 251.29m t.

ISIT, September 12, 2007