Gloomy Expectation
The General Administration of Customs announced on February 11, that the growth of China’s steel export that has lasted as long as 10 years finally declined by 5.5 percent year-on-year in 2008, which was a warn of threat to the field this year.
Customs said on its website that the steel export in China fell down to 59.23 million tons in 2008 whereas the export value has climbed up to $63.44 billion, with an increase of 43.8 percent year-on-year. While look back to the recent months, we can see that steel exports decreased to 1.91 million tons in January, dropping 40 percent year-on-year, and the import of iron ore 32.65 million tons, dropping 5 percent from December 2008.
Steel exported each month reached the summit of 7.68 million tons in August, but it declined to 2.95 million tons in November which is the lowest point since 2007, although there was a minor increase to 3.17 million tons in December.
As a result, Customs addressed their admonishing that this year would see no improvement in this sector.
According to statistics by foreign research organization, new orders would decline substantially as the result of the cut of global demand by more than 10 percent. It takes place even in China’s major markets. For example, it’s estimated that the demand in South Korea will drop by 9.5 percent while the United States by 11 percent, and Japan by over 30 percent. And the winter last year witnessed the beginning of dramatic drop of steel export orders in China.
Customs also warned the industry of the deteriorating trade conflicts against steel products that were made in China. That’s because some trade partners of the same line were anxious to safeguard their industries from the global financial recession. They may either evolve anti-dumping and countervailing cases against Chinese steel products, or upraise the import tariff.
It also added that the competitiveness was weakened after China was forced to revalue the yuan.
Are you interested in the business opportunities in China?
China is one of the world’s great growth markets and is likely to be for many years to come. Foreign companies often face difficulties in assessing Chinese market demand and enacting effective strategies because of the language barriers, culture differences, and high expense.
BPOVIA is the leading virtual assistant and Knowledge process outsourcing (KPO) service provider in China. BPOVIA is the only virtual assistant company ever been nominated for the prestigious “Red Herring 100 Asia” Awards 2008. Combines international perspective with local know-how, BPOVIA can provide our clients China business development service and help our clients doing successful business in China.
Please visit http://www.BPOVIA.com/ for details about our service.
Popularity: 3% [?]