Steel import from China increases

Steel import from China has surged substantially by around 35 percent during the last three months due to low price factor and availability of the stocks of different products in bulk, market sources said on Friday.
They said that private importers had started placing steel import orders in China around three months back when they were quoted lesser rates there than the international market.
"The import of galvanised coils, hot-roll coils and cold-roll coils from China have grown smartly to around 35 percent as we (importers) get lesser rates of these products compared to European products which are still not viable for consistent and smooth trade," said a Karachi-based importer.
Commenting on the prices in China, he said that the international market including China's market is seeing a major fluctuation phase these days and the prices of different steel products varies everyday, therefore, it is difficult to declare any commodity's price now with certainty.
"However, we could say that the prices of galvanised coils in China are ranging between $780 to $800 per tonne, while hot-roll coils are being tagged around $470 to $500 per tonne," he said and added, "Similarly, cold-roll coils are currently being sold at around $530 per tonne."
Market sources have pointed out that steel prices in the European region are still higher and the major import orders are being placed in China and Ukraine by the local importers.
"Some factors which have diverted the importers from Europe to China, is the facility of chartered vessels and availability of the material in bulk," a senior trader said.
Citing reasons of decreasing trend in the Chinese steel prices, he said, "The steel production in China has witnessed a mammoth growth during the last two years, so they have sufficient stocks in hand."
He added that China has also widened its clientele and was receiving a number of big orders from different countries around the world.
"Around two years back, China was one of the consumers of international steel and used to import huge quantity of different steel varieties, however, now the enhanced production capacity has provided an edge to China in export of steel," said another importer.
He added that previously China's share in the total imports of the country was not countable due to similarity in the prices with different competitors, however, when China offered lesser rates the trade gained momentum. Some of the importers have hinted more decline in the existing rates in China and said that in the next two to three months the prices of steel products could fall further.
"Weather conditions mainly moisture in China usually affect the material and cause rusting during the months of November and December, therefore, we expect more decline in almost every commodity prices besides increase in import orders," said another trader.