The real estate crisis that the Asian country is going through prompted the shipment of steel production to other economies, with Vietnam and South Korea standing out as the main buyers of Chinese steel.

Chinese steel exports marked their highest monthly figure since 2016, reaching 9.9 million tons in March, 25% more than the previous year.

This in the midst of lower domestic demand given the real estate crisis that the Asian country is going through, which has led to less acquisition of steel for home construction and repair.

According to Kallanish Commodities analyst Tomas Gutierrez to the specialized media Bloomberg , “Chinese material is becoming more competitive again, with prices falling again in the domestic market, and I think exports will continue to be strong this year.”

Chinese steel exports reach their highest level since 2016

Demand for steel in the Asian giant fell more than 3% during 2023, according to the World Steel Association. On the other hand, the increase in exports has led to strengthening demand for iron ore from groups such as Rio Tinto and BHP, with the country producing around 1 billion tonnes of the product last year.

As an example, hot-rolled steel coil fell to around $500 a ton in late March, the lowest figure since 2020, and Citigroup analysts told Bloomberg they still expect a moderation in net exports during 2024, at least according to its base scenario.

In this context, exports to India more than doubled between January and February. Shipments to Brazil grew by 87%, but even so, East Asian countries, led by Vietnam and South Korea, remain the largest buyers of Chinese steel, concludes Bloomberg .

The US “will not accept” the arrival of Chinese products sold at low prices

The implications of the arrival of Chinese steel to Chile have been in the public spotlight in recent weeks, given the decision to indefinitely suspend the operations of Siderúrgica Huachipato in what they accuse is unfair competition with steel imported from China.

On the other hand, the US Secretary of the Treasury, Janet Yellen, on a visit to the Asian country, stated that she "will not accept" that the world market is flooded with Chinese products sold at a loss, taking as an example, precisely, the Chinese steel that , according to her, “decimated industries around the world and in the United States.”

“I know that our partners and allies share these serious concerns, both developed and developing economies,” he added.