Steel Exports Surge
China Steel Exports Surge to 10.155 Million Tons Amid Strong Global Restocking
Anonymous
Key Points
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SMM’s July steel-export order indicator rose 6.5% month over month, with improvements in both long steel and sheet-and-plate orders preceding the August export increase. Home-appliance stockpiling in overseas manufacturing markets and expectations of higher prices helped release restocking demand.
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Global iron ore shipments reached 34.45 million metric tons by the end of the reporting week, up 14% week over week, while China’s arrivals rose to 26.91 million metric tons, up 19% week over week and 4.2% year over year on a cumulative basis. Despite these supply increases, steel mills remained largely on the sidelines and spot trading was subdued.
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Copper strip operating rates varied significantly by company size in August: large enterprises operated at 83.22%, compared with 55.46% for medium-sized enterprises and 64.95% for small-sized enterprises. SMM also said many purple-copper-strip producers had order books extending into mid-to-late September despite high prices and weaker new orders.
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At Yangshan, average copper warrant premiums rose to $75 per metric ton, while September-arrival EQ copper was quoted around $55 per metric ton. Earlier September QP registered-warrant quotes had reached roughly $90-$100 per metric ton, reflecting firmer offers for some near-term cargoes amid low domestic inventories.
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In North China, #1 copper cathode premiums ranged from parity to 100 yuan per metric ton, averaging 50 yuan per ton—down 40 yuan from the previous day. SMM’s purchase-sentiment index fell to 1.29 while the selling-willingness index rose to 2.72, indicating weakening buyer interest and increasing supplier pressure to sell.
China's steel exports jumped to 10.155 million metric tons in August 2026, driven by overseas stockpiling and rock-bottom prices that attracted buyers from Africa and South America manufacturing.net. The surge comes as Middle East shipping disruptions redirect trade flows and emerging markets rush to restock home appliances and industrial goods before prices climb higher.
Iron ore prices climbed 1.17% as global shipments hit 34.45 million metric tons and Chinese arrivals surged to 26.91 million metric tons, yet steel mills stayed quiet mining.com. The disconnect between rising supplies and weak buying suggests capital flows and investor sentiment—not physical demand—now drive the market.
Restocking Orders Fuel Steel Export Boom
Steel-export orders jumped 6.5% month over month in July, setting the stage for August's massive shipment increase manufacturing.net. Long steel and sheet-and-plate orders both improved as overseas manufacturers feared higher prices ahead. Home-appliance makers in developing countries rushed to build inventories before tariffs or shipping costs could spike.
Iron Ore Supplies Climb Despite Weak Mill Demand
Global iron ore shipments jumped 14% week over week to reach 34.45 million metric tons, while China received 26.91 million metric tons—up 19% week over week mining.com. Yet spot trading remained subdued and steel mills stayed largely on the sidelines, refusing to buy despite ample supply. Prices climbed anyway, driven more by speculators than by actual steel factories needing raw materials.
Copper Strip Makers Push Through Price Pain
Large copper strip factories ran at 83.22% capacity in August, while medium-sized plants limped along at 55.46% and small firms hit 64.95%. High copper prices and seasonal weakness dragged down overall production, yet demand from computing power and energy storage remained resilient enough to keep order books full through mid-September.
Copper Cathode Premiums Fall Amid Weak Buyer Interest
North China copper cathode premiums dropped 40 yuan per ton in a single day to average just 50 yuan per metric ton, reflecting collapsing buyer confidence. mining.com Sentiment scores tell the story: the purchase-sentiment index fell to 1.29 while the selling-willingness index jumped to 2.72, signaling suppliers desperate to move metal and buyers holding back. At Yangshan, warrant premiums reached $75 per metric ton while September-arrival copper traded around $55 per metric ton, reflecting the wide gap between near-term supplies and forward demand.
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