According to data from the Chinese customs, steel export shipments in November 2014 increased 14% MoM to 9.72 million tonnes. Total exports in the first 11 months of 2014 at 83.6 million tonnes are 47% higher than the same period last year

Burdened with huge overcapacity and major slow down in domestic demand, Chinese steel mills have stepped up steel exports especially in last 3 months.

2012 - 51.2 million tonnes (Monthly average of 4.3 million tonnes)

2013 - 57.2 million tonnes (Monthly average of 4.8 million tonnes)

11 Months - 83.6 million tonnes (Monthly average of 7.6 million tonnes)

Last 3 months - 26.8 million tonnes (Monthly average of 8.9 million tonnes)

Nov’14 - 9.72 million tonnes

Oct’14 - 8.55 million tonnes

Sep’14 - 8.52 million tonnes

Chinese economy and steel industry has undergone radical change over last 1 year spelling devastation for global steel mills. It has changed tact from buying driven by high growth model to modulating investment driven balancing model. Growth has plummeted to 7.3% lowest in the last 5 years and portends to be no better in Q4. China has got 1.1 billion tonne steel capacity whereas it is projected to produce 820 million tonnes in 2014. Even at 75% capacity utilization the steel industry is left with surplus volume owing to lack of domestic demand. With near demise of property market and construction activity ebbing in China, mills are running helter skelter to liquidate volumes. Incidentally, production pruning is the last word in China owing to compelling social obligations of employment. Domestic mills in China have diverted volumes to export with twin objective of liquidating surplus volume and quest for better realization propped by rather dubious export incentive structure. But to almost double steel exports in last 3 months over 2013 monthly average, Chinese steel mills have cut their export prices drastically. The low export prices have helped Chinese steel mills to grab major volumes from major steel importing countries across the globe. The current FOB China levels are as under