December 02, 2008

Average steel export H1 2008 up by 22% YoY in Guangdong province

It is reported that due to macro control policies, steel export declined in H2 of 2007 in province Guangdong and it recovers this year.

According to statistics from Guangzhou Customs, province Guangdong exported 120,000 tonnes of steel in January 2008, while the quantity rose up to 223,000 tonnes in May. The average monthly growth rate was 16.8%. The export volume decreased slightly to 210,000 tonnes in June down by 5.6% MoM. Meanwhile, average export price in H1 of 2008 was USD1,038 per tonne up by 22% YoY.

Experts analyzed that the key reason for steel export rebound in Guangdong in H1 was the large price gap between international and domestic market. Meanwhile, the growth rate of international steel price was higher than it in domestic steel market. Even if with export tariff and ocean freight, there is still profit in steel export.