China has once again become a net importer of steel for the first time in 11 years, despite the fact that steel production in the Asian country itself is in full swing. This reports provider of raw material data of S&P.
China imported almost 4.4 million tonnes of steel in June, while, due to the COVID-19 crisis, only 3.7 million tonnes of Steel were exported. The daily steel production of the world’s largest steel producer reached a record height of over 3 million tonnes at the same time.
This situation arises because the Chinese economy was hit by the coronavirus earlier than the rest of the world. That is why the first recovery in the economy is also ahead of that in other countries. The last time China imported more steel than it exported was in 2009, in the aftermath of the financial crisis.
Sources have informed S&P that Chinese imports of steel semi-finished products will continue to be strong in July and August, while steel exports are likely to remain low. This means that China’s role as a net steel importer may continue for a while.