Chinese steel exports struggling amid coronavirus outbreak worldwide
Even though China was gradually back to normal after lockdown, the steel sector of the world's largest steel producer was still facing bleak times as lockdowns against coronavirus are now implementing in all continents, which squeeze global steel demand by shutting down factories and steel trade to almost zero.
According to Bloomberg’s index of new steel export orders that released this Tuesday, it registered its most serious contraction since the aftermath of the global financial crisis in 2008. Moreover, the pandemic has raised the prospects of deep recessions in major industrial economies, punishing the markets that China needs to support its export momentum.
Analyst at CRU Group in Shanghai said the decline in exports will be pretty sharp because not only that demand and logistics are frozen, but also seen non-performance of contracts to some regions, so Chinese mills are getting more and more cautious.
