Japanese Tsunami has unruffled many quarters including the Chinese export market which had been limping into oblivion. Immediately after the shattering wreaked by the earthquake and Tsunami the domestic as well as the export levels exhibited resilience based on anticipation.
Apart from the visualized demand for reconstruction from Japan, Chinese mills expected to fill the void left by inactive Japanese mills in South East Asia. At the same time the expected waiver of 9% export rebate on boron added HRC has done its bit in keeping the sentiments buoyant.
The twin factors were enough to upswing the export levels in China when other part of the world remained quiet. The impact was more pronounced in flat product which will have good demand for construction of shelter homes. The domestic levels in China ever since have collapsed after the rather shocking hike in interest rates by 50 basis points by the People’s Bank of China. Moreover not much steel is likely to find its way into Japan from China as the quality norms are stringent where only JIS standard material can be imported. Hence the sprint might be another flash in the pan.
( source: www.steelgugu.com )