Strong Chinese exports bolster steel prices
Time:Fri, 26 Jun 2026 09:23:22 +0800
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Despite sluggish domestic consumption, China's manufacturing demand for steel in May remained stable year on year, supported by robust exports.
Statistical data shows that May output in the machinery, shipbuilding, and home appliance industries increased year on year, while production in the automotive, power generation, shipping container, and railway facility sectors declined.
Market participants mentioned that strong manufacturing exports have been a key driver of demand for flat steel, further bolstered by the shipbuilding industry's continued impressive performance in June.
On the other hand, demand for cold-rolled coil (CRC), driven primarily by the automotive and home appliance industries, remains healthy compared to last year. In addition, automakers are accelerating their overseas sales expansion, and the automotive industry's steel needs are unlikely to see a significant decline in 2026.
Consequently, export markets have emerged as a crucial driver supporting both the manufacturing and steel industries this year, with overseas demand offsetting weakness in the domestic consumer goods market.
