Exports of China's Iron & Steel Were Cut down by 54.9% in Q1 of 2009

In the first quarter of 2009, China totally producedpoints on 17th, April compared with the climax this
127.44 million tons of crude steel, up by 1.4% YOY, inyear, in which the prices of 12mm deformed steel
which the daily steel yields were 1.51 million tons inbar and 2.75 mm hot rolled coil were dropped by 660
the last third of February; equivalent to the annualYuan per ton and 733Yuan per ton compared with
steel yields of 550 million tons. In March, the nationalthe climax this year, down by 16.3% and 17.6%
average daily steel yields were 1.455 million tons, uprespectively.
by 36% compared with the lowest level 1.07 million 
tons of the daily steel yields in the first third ofCompared with the end of last year, the price index
November 2008 and higher than the average level ofof the steels in Chinese market was 97.59 points in
the national daily yields of 1.37 million tons in last year.the end of March, down by 5.71 points compared
Meanwhile, the major foreign iron and steelwith the 103.3 points in the end of last year, 5.53%
enterprises cut down their production greatly. Fromof reduction rate, in which the price index of the long
January to February, the steel yields in 65 steelsteels was cut down by 8.36% as well as 4.6%
producing countries were 88.65 million tons, down bydown in the price index of the board steels. Overall,
37.2% YOY, exclusive of the steel yields in China.at present, the price of the steel products in Chinese
The steel yields in January and February in Chinamarket continues to drop, which has been already
accounted for 47.9% of the global yields.lower than the price in 1994.
  
In the first quarter of 2009, China exported 5.14In the first quarter of 2009, the yields of the crude
million tons of steel products accumulatively, down byiron were increased by 5.039 million tons year on year
54.9% YOY. In March, the steel exports amountedin China as well as the increases in the consumption
to 1.67 million tons, dropped by 59.8% YOY. Fromvolumes of the ore into the furnace, which amounted
January to March, the net exports of the steelto 7.9616 million tons. However, in the first quarter of
products and billets were converted into 1.12 million2009, the import volumes of the iron ore were
tons of crude steel, decreased by 85.3% YOY, whichincreased by 20.8611 million tons year on year,
was equivalent to the net exports of 4.52-million-ton12.8995 million tons more imported than the
crude steel in the whole year, down by 43 millionconsumption volumes of the ore into the furnace. In
tons compared with the net exports in 2008. Inaddition, the yields of the domestic fine ore were
March, it was the first time that the net importsgrown in the first quarter. It was obvious that the
were shown in the steel products and billetsupplies of the ore into the furnace exceeded the
converting into crude steel.demands in the domestic market.
  
In March 2009, China exported 1.67 million tons ofIn the first quarter of 2009, the average price of the
steel products and no steel billet was exported;imported iron ore was 80.47 USD per ton at CIF
imported 1.27 million tons of steel products and 460China (including FOB and shipping fees etc), down by
thousand tons of steel billets. If all converted into the50.53 USD per ton over the previous year, 38.57%
crude steel, in March, China totally exported 1.78of reduction rate. According to the statistics from
million tons of steels, increased by 120 thousand tonsJanuary to February, the average price of the
and up by 7.05% at link relative ratio; decreased byimported iron ore was cut down by 37.44% year on
2.66 million tons and down by 59.95% year on year.year at CIF China, in which the price of the spot mine
If all converted into the crude steel, in March, Chinafrom India was dropped by 59.94%. Due to the high
totally imported 1.81 million tons of steels, increasedin the price of long contract mine, the average price
by 340 thousand tons and up by 23.34% at linkof the mine from Brazil was decreased by 29.37%
relative ratio; increased by 180 thousand tons and upintegrated the long contract mine and spot mine, the
by 11.36% year on year. In March, the net importaverage price of the mine from Australia was
volumes of the steels were 30 thousand tons inreduced by 21.37% as well as 17.74% down in the
China, which had been the first time that took placeSouth African mine. Owning to the iron ore supplies
the net import of steels in single month. Fromexceeding the demands obviously in the international
January to March, the accumulative net exports ofmarket, the price of the imported iron ore showed
the steels amounted to 1.13 million tons, decreasedthe sharp decline in Chinese market.
by 6.58 million tons and down by 85.32% year onAccording to the estimation, from the aspect of the
year.new added yield capacity, the yield capacity of the
 crude steel will reach 650 million tons by the end of
The composite index of the steel price went up2009, but the actual demands are less than 500
again from the bottom low of 101.5 points inmillion tons. The yield capacity surplus has been the
November of last year in Chinese market to 109outstanding problem that restrains the development
points in February this year. Subsequently, the pricesof the iron & steel industry.
of the steels were down all the way and to 95