China exported nearly 26 million tons of steel in Q1 2024, a 28% increase from the previous year, driven by reduced domestic demand due to the real estate crisis.

This surge in exports is the largest since the global oversupply crisis of the mid-2010s and is causing trade tensions worldwide.

The world's largest steel producer has seen its steel exports rise, with significant increases in shipments to East Asia, as well as to India, the Middle East, and Latin America.

The increase in Chinese steel exports is affecting global trade relations. U.S. President Joe Biden is calling for tariffs of up to 25% on some Chinese steel products.

While the U.S. imports only a small amount of steel from China, this is part of Washington's broader effort to address overproduction in various industries, from metals to solar energy.

In Q1 2024, China's steel exports to Brazil increased by 29% compared to the same period last year, while exports to Colombia and Chile rose by 46% and 32%, respectively, according to Kallanish Commodities.

All three countries have either implemented or are preparing trade measures to address this surge.

Chile's steel producer Cap SA reversed its decision to close its plants after the government imposed tariffs on some Chinese products.

China has produced around 1 billion tons of steel annually since 2019, but the rapid decline in construction activity over the past year has put pressure on its mills.

China's steel exports to Egypt also increased by 95% in Q1 2024, while exports to the United Arab Emirates rose by 81%.

Source: Vietstock