The reasons why the world buys steel from China mainly include the following:
- China is the world’s largest producer of steel, with crude steel production ranking first in global output. It has huge steel production capacity and output, which can meet the massive demands of the global market.
- China’s steel export volume has continued to increase, and the proportion of exports to the countries participating in the Belt and Road Initiative has also been increasing year by year. The resource price advantage of Chinese steel is obvious. Taking hot-rolled coils as an example, in 2023, the export price of Chinese hot-rolled coils was $65 – $70 per ton lower than that of India and the Black Sea region.
- The Chinese steel industry focuses on improving the quality of steel exports and optimizing the structure of steel exports. From 2016 to 2022, the average price of China’s steel exports increased by 2 times, and the price difference at home and abroad increased by 10 times.
- China has a rich variety of steel products and can provide diversified steel products to meet the specific needs of different countries and regions and different industries.
- China’s steel production technology and processes are constantly advancing, and some steel products are competitive in terms of quality and performance.
Meanwhile, according to the World Steel Association’s April 2024 edition of the Short-Term Steel Demand Forecast report, global steel demand will rebound by 1.7% in 2024 to 1.793 billion tons, and global steel demand will grow by 1.2% in 2025 to 1.815 billion tons. Global economic growth and the development of steel-consuming industries have also driven the demand for steel, and China, as a major steel producer and exporter, can meet these demands to a certain extent.
However, international trade is affected by multiple factors, including market demand, price, quality, trade policies, etc. The specific reasons for different countries and regions to purchase Chinese steel may vary, and market conditions may also change over time.
