China has become a net importer of steel for the first time in 11 years in June, despite record daily crude steel production during the month, says a report.

 

This indicates the extent of China’s stimulus-fuelled economic recovery, which has supported rising domestic steel prices, while other markets are still recovering from the impact of the coronavirus pandemic, said Platts Breaking News report.

 

China imported 2.48 million mt of semi-finished steel products in June, comprising mainly billet and slab, according to state-owned media citing China Customs data released on July 25. Added to finished steel imports, it took China's total imports in June to 4.358 million mt, surpassing June's finished steel exports of 3.701 million mt. This made China a net steel importer for the first time since the first half of 2009.

 

Market sources said China's imports of semi-finished steel will remain strong in July and August, while steel exports will remain low. This means China's role as a net steel importer may continue for a while longer, the report said.

 

China produced 574 million mt of crude steel in 2009, and exported 24.6 million mt that year, China Customs data showed.

 

In June, China's daily crude steel output hit an all-time high of 3.053 million mt/day, annualized at 1.114 billion mt, according to National Bureau of Statistics data. Mill capacity utilization is estimated at around 91% in June.

 

S&P Global Platts forecasts that China’s crude steel production will rise by 2% year on year in 2020.