Defeating the Chinese steel-exporting armada: Only a dream? -The Chinese steel-exporting armada not yet defeated

摘要

China's steel mills in the past few years have cut the hot-rolled band (HRB) export price several times to remarkably low levels - i.e., well below the marginal cost of the median steel mill - when there's sizable excess supply in their home market. In April 2017, for example, the Chinese steel mills reduced their HRB export price, FOB the Chinese port, to just US$407/ metric ton from US$515/metric ton a month earlier, which was probably by far the greatest discount for an export price versus the average of the others in the history of the industry - i.e., US$70-80/metric ton below what a number of the other exporting mills were offering.