Coronavirus takes toll on China’s steel exports with orders cancelled

Coronavirus has further cooled China's already chilling steel exports. Industry analysts predicted China's steel exports to slump by around 8 percent in the first quarter, as overseas orders are cancelled and cut-off logistics delay shipments.

Luo Tiejun, deputy director of the China Iron and Steel Industry Association, said during a press conference on Saturday that because of the epidemic, China's steel exports will see a significant decline in the first quarter, and February will see a “relatively large” fall in exports.

Wu Wenzhang, president and founder of steelhome.cn, told the Global Times on Sunday that China's steel exports could fall by 1.5 million tons, or 8 percent, in the first quarter, as the government's anti-coronavirus measures, including closing of ports and highways, made it hard for steel companies to ship products overseas.

On the other hand, orders from overseas clients are also slashing as they express concern for the length and influence of the virus, industry insiders said.

“As far as we know, some overseas clients have canceled their steel-buying orders with Chinese companies because they worry about the possibility of the virus spreading through the delivery of the products,” said Wang Guoqing, research director at the Beijing Lange Steel Information Research Center.

“Also, as the prices of Chinese steel products fall continuously amid the epidemic, clients are unsatisfied with the previously settled price,” Wang told the Global Times.

According to Wang, cancellation of orders is rare but the coronavirus epidemic is like a thorn that makes many overseas clients think twice before making orders.

Wang Bing, a person in charge of Longze Steel Products, a steel trading company in East China's Shandong Province, said that there have been basically “no new overseas orders” after the Spring Festival holiday, when coronavirus infections peaked.