Guangdong sees drop in growth rate for steel exports
By , 2008-03-08 04:00:47
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According to Statistics by Huangpu Customs, steel exports in Guangdong Province during January to October 2007 period totaled 2,245,000 tonnes worth USD 1.92 billion up by 27.4% and 66.9%YoY respectively from the same period of last year.
Steel exports from Guangdong have been on the decrease since February 2007 and it is more and more evident following export policy change in July 2007. Exports volume in October 2007 only arrived at 130,000 tonnes down by 53.7%YoY or 24.3%MoM. Hong Kong, ASEAN and the EU were the major destinations.
Chinese government has adjusted export policy for consecutive four times since early this year so as to rein in hot exports, speed up industry consolidation and help optimizing its structure. As a matter of fact, the growth steel exports in China have started to slow down under the tightening policy.
The rise in steel capacity and high expectation for overseas demands are still bolstering the exports. However, the rise in Chinese domestic prices, ocean freight rate have led to smaller gap between export offers and overseas market prices, which is the major reason behind the drop in exports.
