China's foreign sales of rolled steel fell to a 35-month low in January, upon ebbing demand worldwide and increasing cost from appreciation of the Chinese currency.
According to latest data provided by the General Administration of Customs, China sold abroad 1.91 million tonnes of rolled steel last month, a decline of 2.22 million tonnes, or 53.8 percent, from the same month of 2008.
The steel exports were also 1.26 million tonnes, or 39.7 percent, below the December level.
Analysts with United Metal Network, a major market research and consulting website for metals trade, said weak demand caused by the international financial crisis was the major culprit for China's declining steel exports. The RMB appreciation also helped weaken the competitiveness of China's steel products.
Thursday's China Daily said the number of new orders for China-made steels is expected to decline because global demand is likely to shrink by over 10 percent this year as estimated by foreign research organizations.
Among China's major markets, demand in the Republic of Korea is estimated to drop by 9.5 percent from a year ago, with the United States down by 11 percent and Japan down by over 30 percent, according to the newspaper.
Affected by the trend, China's steel export orders declined sharply since the fourth quarter last year.
(Xinhua News Agency February 12, 2009)
