Key Takeaways
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- China’s exports of semi-finished steel products, such as steel billets, have increased by 320% to 7.4 million tons in the first seven months of 2025.
- The surge adds to a record flood of steel exports despite rising global protectionism and trade restrictions.
- Semi-finished steel exports are growing as China faces domestic pressures and other countries restrict more typical steel products.
- Indonesia, the Philippines, Turkey, Italy, and Saudi Arabia are the largest buyers of these semi-finished steel products.
- Some in China’s steel industry call for curbs on billet exports to preserve domestic processing capacity and control iron ore prices.
- Analysts expect exports to continue unless mandatory production limits are imposed, citing China’s strong price competitiveness.
What’s Happening?
China is increasingly exporting semi-finished steel products to new markets, circumventing trade barriers on finished steel goods. This trend supports China’s steel industry amid weak domestic demand, especially from the property sector.
Why Does It Matter?
The surge in semi-finished steel exports intensifies global steel market competition and complicates trade relations. It also highlights China’s strategic adaptation to trade restrictions, impacting steel producers and policymakers worldwide.
What’s Next?
Watch for potential government actions in China to limit billet exports and for responses from importing countries facing increased steel supply. The dynamics will influence global steel prices and trade policies.
