Singapore — China became a net importer of steel for the second consecutive month in July, despite crude steel production rising 9% year on year during the month, according to customs data released Aug. 26.
China may remain a net steel importer in August, but could return to being a net steel exporter sometime in the fourth quarter, market sources said.
China imported 2.46 million mt of semi-finished carbon steel products in July, comprising mainly billet and slab, up 4% from June. Added to finished steel imports, it took China's total steel imports in July to 5.06 million mt, surpassing July's steel exports of 4.18 million mt, customs data showed.
The steel imports in July were mainly from orders placed in May, when the Chinese domestic steel demand rebounded strongly, as the infrastructure and property construction sectors were boosted by monetary and fiscal stimulus.
At that time, other markets were still under lockdowns or recovering from the impact of the coronavirus pandemic, making China a very attractive destination for steel, sources said.
