Any commodity overview is incomplete without something about China. China accounts for almost half of global steel consumption. Increasing steel exports from China is one of the major issues facing the global steel industry. Chinese steel exports are reported on a monthly basis and are a key indicator for investors to track.

Chinese steel exports reach record levels

The previous chart shows net steel exports from China. Net exports can be defined as exports minus imports. China’s steel exports have risen considerably this year. Net exports are up by almost 50% in the first eleven months of the current year.

China was a net exporter of 9.7 million tonnes of steel in November. This is almost double of what China exported in November last year. And it’s a worrying sign for global steel companies. Why Chinese exports are worrying

Chinese steel exports, often subsidized by the Chinese government, upset steel markets in other countries. Many of these exports are sold at prices that are way below the price of comparable products in the US. To learn why Chinese steel is cheaper, read 3 reasons why China is the biggest steel exporter .

Steel companies such as ArcelorMittal SA (MT), United States Steel Corporation (X), AK Steel Holding Corporation (AKS), and Nucor Corporation (NUE) can’t match the price of Chinese steel products. Some of the steel products from China are nearly 20% cheaper than US products. And this is after you account for shipping and transportation costs.

But why are China’s steel exports increasing? We’ll discuss this in the concluding part of this series.

中国最大钣金展-锻压展-2015第十六届广州国际钣金、锻压工业展览会-巨浪展览- The 16th China（Guangzhou）Int’l Sheet metal machinery,Forging, Stamping and Setting Equipment Exhibition