Global steel supply and demand imbalance brings opportunities for exports

The severe steel coil shortage in Europe and the United States has led to steel prices rising to the highest level since 2008 and has attracted export interest from Asian steel mills. Moreover, this situation seems unlikely to change until steel output rebounds in the second half of the year, which means that the second quarter will bring good opportunities for steel exports.

Since the beginning of this year, the ex factory prices of hot rolled coils in the Midwest and Northern Europe have soared. The delivery dates in both markets are full, and many customers are unable to obtain steel supply in time.

The recovery of overseas market demand and prices has made China's steel products more competitive. As a result, China's steel exports have increased this year. But in May, China's finished steel exports fell 33.9% month on month to 5.271 million tons. It is estimated that China's steel export volume will increase significantly in 2021.

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