Japanese steelmaker Tokyo Steel has resumed steel exports to China for the first time in 10 years. China has a huge demand for metal due to a flurry of infrastructure projects in the country.
Chinese imports of steel materials in July tripled to 2.61 million tons from a year ago, pushing up their prices worldwide. China has pumped money into the economy to combat the impact of the coronavirus outbreak, which has led to a surge in infrastructure projects.
China turns from one of the largest Steel suppliers to buyers. It was the Japanese company’s first steel exports to China since May 2010, and it has supply contracts to the country that runs through September for some 100,000 tons.
The Chinese steel industry produced 93.36 million tons of steel in July 2020. However, local production is not enough to meet the demand. China imports steel from India, South Korea, and Japan.
The price of steel sheets recovered to $480 per ton in July 2020.