【Monthly Galvanized Steel Import Data】According to the latest customs data, China's galvanized steel imports totaled 53,500 mt in June 2026, up 5.11% MoM but down 19.58% YoY. Cumulative imports for January–June reached 327,500 mt, representing a 14.78% decline from the same period last year.

Despite overcapacity, China’s large-scale exports of non-oriented electrical steel are underpinned by its complete industrial chain of the iron and steel sector. China has witnessed continuous capacity expansion of non-oriented electrical steel in recent years, leading to prominent overcapacity of mid-to-low grade conventional products. Coupled with limited incremental domestic demand from traditional home appliances and industrial motors, newly added output cannot be fully absorbed merely driven by high-grade variants for new energy vehicles. As a result, the overall domestic market remains in loose supply with mounting supply-demand pressure. Benefiting from China’s full-fledged integrated steel industrial chain, consistent product quality and economies of scale in cost control, domestically made non-oriented electrical steel has gained steadily improved cost-performance competitiveness globally. Meanwhile, rigid incremental demand has emerged from manufacturing relocation in Southeast Asia, Latin America, South Asia and other regions, as well as the popularization of high-efficiency motors overseas. Against this backdrop, the industry has continued to divert excess domestic capacity via exports, maintaining steady regular overseas shipments year-round. Imports of Non-Oriented Electrical Steel: Concentrated Sources from Japan and Chinese Taiwan, Mainly for Supplementary High-Grade Products 1. Total import volume Monthly imports of non-oriented electrical steel in the first half of 2026 posted a fluctuating trend of surging first then falling back, with May hitting the highest monthly import volume of the year. In terms of import source structure for January-June, import origins are highly concentrated. Japan ranks as the dominant top source with a far-leading import volume, followed by Chinese Taiwan as the second core supplier. South Korea takes the third place with marginal import volumes, while Germany, Sweden, France, Russia, India, Vietnam and other economies record negligible import quantities. This fully demonstrates that China only imports high-grade non-oriented electrical steel from Japanese manufacturers and Chinese Taiwan, with self-sufficiency achieved for all mid and low grades. Data Source: General Administration of Customs of the People's Republic of China 2. Breakdown by Product Specifications Imports of the two major specifications of non-oriented electrical steel from January to June 2026 were characterized by highly concentrated supply sources and obvious tiered pricing. Wide-width products (HS Code 72251900, width ≥ 600 mm) Core supplies came from Japan and Chinese Taiwan, with half-year import volumes reaching 11,719.4 tons and 10,318.8 tons respectively. Their month-on-month increments in June stood at 948.9 tons and 2,378.7 tons, serving as the primary drivers of import growth in that month. In terms of prices, the average unit price for Japanese material was RMB 9,220 per ton, and that for material from Chinese Taiwan was RMB 8,090 per ton, showing a stable price gap. Small batches of high-grade material imported from France and Sweden carried substantially higher unit prices, while low-priced marginal supplies from Russia, Vietnam, India and other economies were negligible in volume. Narrow-width products (HS Code 72261900, width ＜ 600 mm) The overall import volume was far lower than that of wide-width products, and imports were still dominated by Japan and Chinese Taiwan, with half-year imports of 453.7 tons and 202.4 tons correspondingly. Shipments picked up moderately in June, whereas import volumes from the second-tier suppliers including Germany, South Korea and Sweden remained basically flat. Price divergence was far more drastic for narrow-width grades: average prices from Japan and Chinese Taiwan hit RMB 18,660/ton and RMB 11,870/ton respectively. Average prices of high-end European and American materials approached RMB 20,000 per ton, and the unit price of goods declared for domestic circulation and customs clearance exceeded RMB 31,000 per ton. Only sporadic imports were recorded from other countries. Overall Summary In the first half of the year, non-oriented electrical steel imports were heavily reliant on mid-range conventional products sourced from Japan and Chinese Taiwan. The volume growth in June was entirely contributed by increased wide-width shipments imported from these two regions. A massive price gap existed between domestic and overseas high-grade narrow-width materials. Small volumes of high-priced special grades were imported sporadically from Europe, while low-cost marginal supplies from minor origins exerted minimal impact on the market. The market demonstrated striking features of highly concentrated supply and obvious stratified pricing. Data Source: General Administration of Customs of the People's Republic of China Exports of Non-Oriented Electrical Steel: Extensive Overseas Demand Coverage with Notable Diversified Regional Distribution 1. Total Export Volume Monthly exports of non-oriented electrical steel fluctuated throughout the first half of 2026. The aggregate monthly shipment volume from January to June was generally lower than the same period in 2025. Exports surged year-on-year in February to hit the highest point in the first six months, followed by volatile performance from April to June. In terms of cumulative export destinations for January–June 2026, overseas demand covered a wide range of markets featuring remarkable regional diversification. Vietnam ranked as China’s top export destination for non-oriented electrical steel with the largest purchasing volume in the first half of the year. Italy, Belgium, Mexico and Brazil formed the second major tier, with minimal gaps and comparable demand volumes among the four countries. South Korea, Serbia and Thailand fell into the third tier, while purchasing volumes from Pakistan and India were relatively low. The export markets spanned Southeast Asia, Western Europe, Latin America, South Asia and other regions. Decentralized procurement by overseas industrial chains for home appliances and motor manufacturing provided steady underlying support for China’s exports of non-oriented electrical steel. Data Source: General Administration of Customs of the People's Republic of China 2. Breakdown by Product Specifications Exports of the two major specifications of China’s non-oriented electrical steel in January–June 2026 were marked by clear volume tiers, as well as prominent divergence in regional flow and transaction prices. Wide-width non-oriented electrical steel (HS Code 72251900, width ≥ 600 mm) This specification constituted the absolute mainstream export product with robust growth in overseas demand. In the first half of the year, exports to Italy reached 36,428.2 tons, ranking firmly first, followed by Mexico at 33,499.6 tons and Brazil at 33,097.3 tons. Belgium, South Korea and Thailand formed the second-tier destinations, while Vietnam, Pakistan, India and Malaysia served as supplementary markets. Export destinations covered Europe, Latin America, Southeast Asia, South Asia and other regions, with Mexico recording the most remarkable volume increase in June. Prices for this wide-width grade showed narrow gaps and generally stable performance. Pakistan had the lowest average price at RMB 3,920 per ton, while Belgium and South Korea saw the highest price of RMB 5,230 per ton. Transaction prices for other countries mostly fell within the range of RMB 4,100–4,800 per ton. Narrow-width non-oriented electrical steel (HS Code 72261900, width ＜ 600 mm) Its total export volume was far lower than that of wide-width products, with highly concentrated export destinations. Vietnam (24,797.1 tons) and Serbia (21,808.7 tons) were the core absorbing markets, and the volume growth in June was mainly driven by these two markets. Pricing presented huge tiered gaps: the average export price to Japan stood at RMB 13,480 per ton, and RMB 11,680 per ton to Serbia, reflecting substantial premium for high-grade products. Mid-range materials shipped to Belgium and Slovenia were priced at RMB 8,000–9,000 per ton, whereas low-end conventional grades exported to Iran, Bangladesh and other countries were only around RMB 4,000 per ton. Overall Conclusion Wide-width products achieved volume expansion via diversified exports across multiple regions with relatively unified quotations. Narrow-width products relied heavily on two core markets, Vietnam and Serbia, and high-end exported grades enjoyed strong premium capability. Distinct structural differentiation was observed across the two specifications in terms of export volume, target markets and transaction prices. Data Source: General Administration of Customs of the People's Republic of China Conclusion On the import side, imports of wide and narrow width non-oriented electrical steel are predominantly sourced from Japanese manufacturers and Chinese Taiwan, which together account for the overwhelming majority of total import volume. The import volume growth in June was mainly driven by increased arrivals of wide-width products from Japan and Chinese Taiwan, resulting in an extremely high concentration of import supply sources. On the export side, wide-width non-oriented electrical steel serves as the absolute backbone of overseas shipments, with exports dispersed to multiple countries across Europe, Latin America and Southeast Asia. Italy, Mexico and Brazil are the core purchasing markets, and Mexico, South Korea and other destinations posted notable export volume increments in June, accompanied by relatively stable average transaction prices. By contrast, narrow-width non-oriented electrical steel registers a much smaller export volume, whose excess capacity is largely absorbed by Vietnam and Serbia. Significant price premiums are obtained from high-end overseas orders, and there is a clear divergence in purchasing volumes and transaction prices among different destination countries. In summary, China’s non-oriented electrical steel industry is basically export-oriented, with only a small volume of high-grade products imported from Japan and Chinese Taiwan as supplementary supplies.

Chinese steel investment is gradually shifting from direct exports to localized production in Southeast Asia. New and planned projects in Malaysia, Indonesia, Vietnam, Thailand, and the Philippines are expected to strengthen regional supply, but if capacity growth continues to outpace demand, it could further intensify market competition.

JSW Steel expects production and sales to strengthen from Q2 FY27 as the expanded Blast Furnace-3 at Vijayanagar ramps up, while reaffirming an aggressive capacity expansion pipeline spanning Dolvi, Odisha, Utkal and Kadapa. Despite the planned BF-3 shutdown, the company reported record first-quarter steel sales of 6.25 million tonnes, supported by resilient domestic demand and a 46% year-on-year increase in exports.

Chinese Taiwan's stainless steel producers Yusco and Tang Eng filed an anti-dumping investigation against Vietnamese stainless steel imports in October 2025 but withdrew it due to insufficient documentation. However, import volumes have risen sharply month by month, with June surging to 6,196 tons — 11 times February's volume — prompting a renewed application in July. Applicants note that Vietnamese stainless steel imports have grown significantly since 2023–2024, with prices approximately US$80–100/ton below Taiwan, China's market levels, causing material harm to domestic producers. Total Vietnamese stainless steel imports into Taiwan, China reached over 17,000 tons in H1 2026. A rebound in Chinese Taiwan's stainless steel prices and NTD appreciation in Q2 further accelerated import inflows, compelling producers to pursue the AD investigation once more.

Ukraine-based seamless stainless steel pipe producer Centravis will place its Uzhhorod facility into conservation mode from September 1, 2026, citing the EU's new steel import quota regime effective July 1, which sharply reduced tariff-free quotas and raised out-of-quota duties to 50%. The company expects the revised quota system to reduce its European sales by approximately 50%, making it economically unjustifiable to operate both its Nikopol and Uzhhorod production sites. Employees will remain on payroll during the conservation period, with the facility maintained for potential resumption. The Uzhhorod plant, commissioned in 2023 to diversify production risks away from the frontline city of Nikopol, currently employs around 130 people. Centravis plans to consolidate production at Nikopol despite ongoing security challenges in the region.

On July 14, data from the General Administration of Customs showed that China exported 10.32 million mt of steel in June 2026, down 21,000 mt MoM or 0.2% MoM. Cumulative exports from January to June reached 54.874 million mt, down 5.6% YoY. In June 2026, China imported 441,000 mt of steel, down 10,000 mt MoM or 2.2% MoM. Cumulative imports from January to June were 2.696 million mt, down 11.3% YoY. Table 1: Overview of Steel Imports and Exports, January-June Source: SMM Steel Exports Remained High in June According to SMM's June export production schedule survey, planned HRC export volume for the month stood at 1.05 million mt, slightly lower than actual exports in May, with a relatively limited decline. Meanwhile, SMM export order data showed that steel export orders remained high in mid-April, laying the foundation for high steel exports in May-June. Table 2: China’s Total Steel Exports Source: SMM Steel Imports Stayed Low in June On the import side, steel imports in June were 441,000 mt, down MoM. January-June cumulative imports were 2.696 million mt, down 11.3% YoY. Net steel exports reached 52.178 million mt. Short-Term Steel Export Outlook 1. Global Manufacturing Declined MoM; Domestic New Export Orders Recovered Marginally According to J.P. Morgan global PMI data, the global manufacturing PMI stood at 52.2 in June 2026, still in expansion territory but with momentum slowing for a second consecutive month, mainly due to earlier stockpiling to avoid Middle East shipping risks, while preventive stockpiling demand waned in June. In addition, end-use consumer goods demand in Europe and the US was weak, global export orders fell below the 50 mark, and the ASEAN composite PMI dropped 1 point MoM, with regional sentiment cooling significantly. China's manufacturing new export orders index at 50.1% in June, up 1.5 percentage points MoM, pointed to a marginal recovery in external demand. 2. Supply Outside China Rose MoM; Overall Supply Pressure Intensified Global crude steel production fell 0.3% YoY to 157.9 million mt in May 2026. In China, against a severe backdrop of finished steel destocking falling short of expectations and losses, steel mills proactively brought forward maintenance plans to defensively control output. Excluding China, production in the rest of the world rose 28.8% YoY. The Asian market was unusually resilient, with India's crude steel production recording 14.1 million mt. Meanwhile, Vietnam's production surged 27.2% YoY, driven not by a stress response to trade barriers but by downstream manufacturing entering a concentrated stockpiling phase, coupled with genuine demand from infrastructure projects rushing to meet deadlines ahead of the monsoon season. In contrast, production in the Middle East plunged 19.4% YoY in May, with previous war damage from geopolitical conflicts and wartime energy controls remaining an invisible and heavy ceiling suppressing production resumptions in the region. Production regions in Europe and the US (the US up 9.2% YoY, Germany up 7.3% YoY) maintained relatively active operating rates, supported by new-type data center infrastructure and anticipatory moves to preempt regional trade barriers such as the EU's Carbon Border Adjustment Mechanism (CBAM). It is reported that the Middle East recently started offering billet exports and concluded deals. Meanwhile, increased production in India, Vietnam and others also put some pressure on domestic exports. Figure 1: Global Crude Steel Production by Region Source: SMM 3. Price Advantage Narrowed Significantly; Pressure on Export Orders Intensified As of July 16, 2026, HRC export quotations (FOB) for India, Turkey, and the CIS were $510/mt, $408/mt, and $530/mt, respectively, while China's HRC export quotation (FOB) was $493/mt. Currently, China's HRC export quotations are $17/mt, $115/mt, and $37/mt lower than those countries. China's steel export price advantage narrowed significantly MoM from June. The overseas market remained in the off-season, and low-price export promotion remained the main channel for them to relieve domestic pressure. In China, prices remained relatively firm supported by costs. The price spread between Chinese and overseas markets narrowed markedly, intensifying pressure on export orders. Figure 2: HRC Quotations in Major Global Markets Source: SMM 4. Export Orders Remained at Low Levels in May-June; A Sudden Increase Is Difficult According to SMM's latest steel mill export order schedule, planned HRC exports for this month totaled 1.059 million mt, up 5.2% MoM from actual exports last month. SMM's steel export order data showed that due to the ongoing overseas off-season and consecutive overseas price declines, steel export orders in May-June declined significantly MoM from the previous period. Figure 3: SMM Steel Export Order Volumes Source: SMM 5. Anti-Dumping Cases with Impact Increased in June New anti-dumping related cases in China increased in June, involving products such as steel pipes, coated sheets, cold-rolled, stainless steel, hot-rolled, and medium-thickness plates. Details of the cases and their impact volumes are shown in the table below. Table 3: New Anti-Dumping Cases in June Source: SMM Overall, against the backdrop of the overseas off-season coupled with a narrowing price advantage, the weakness in earlier export orders may gradually be reflected in export data. SMM expects that actual steel exports in July will face some downward pressure. However, as overseas prices continue to pull back and hit bottom, some new procurement demand may be released. Figure 4: Steel Exports and Forecast, 2024-2026 Source: SMM Source Declaration: All data other than publicly available information is processed by SMM based on public information, market communication, and SMM's internal database models, and is for reference only and does not constitute any decision-making advice. Note: This article is original content of this official account. If you need to reprint, whitelist, or cooperate, please contact us. 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The State Council Information Office held a press conference today (14th) to present China's foreign trade performance since the start of this year. It was introduced that in H1, China's foreign trade achieved double-digit growth and maintained a good momentum. With the rapid development of artificial intelligence, imports and exports of related products showed strong momentum. In H1, imports and exports of computing hardware such as electronic components and computer parts totaled 5.13 trillion yuan, up 56.6%. Smart products like AI glasses, AI translators, and mechanical exoskeletons have been quickly iterating, with various innovative products constantly emerging. According to customs statistics, in H1 of this year, China's total goods trade imports and exports reached 25.47 trillion yuan, up 16.9% YoY. Specifically, exports were 14.73 trillion yuan, up 13.4% YoY, maintaining growth for 11 consecutive quarters; imports were 10.74 trillion yuan, up 22.1% YoY, outpacing exports by 8.7 percentage points. In June, imports and exports totaled 4.78 trillion yuan, up 24.2% YoY, maintaining growth for 17 consecutive months. Export side, the product structure further improved. In H1, China's exports of mechanical and electrical products reached 9.36 trillion yuan, up 20.1%, accounting for 63.5% of total exports, up 3.5 percentage points compared to the same period last year. Exports of high-tech products reached 3.26 trillion yuan, up 39%. Import side, in H1, China's import growth outpaced exports by 8.7 percentage points, promoting balanced development of imports and exports. Within this, imports rose for energy and other bulk commodities (3.4%), mechanical and electrical products (28%), and agricultural products (8.6%). Trading partner side, China's diversified markets continued to consolidate. In H1, China's imports and exports to Belt and Road partner countries totaled 12.97 trillion yuan, up 14.8%, accounting for 50.9% of total foreign trade. Imports and exports to neighboring countries reached 9.44 trillion yuan, up 20.6%. Trade with Latin America, Africa, and the EU expanded by 16.2%, 19.6%, and 10.2%, respectively. Business entity side, all types of business entities in China maintained good growth momentum. Imports and exports by private enterprises reached 14.53 trillion yuan, up 17%, accounting for 57% of total foreign trade. Imports and exports by foreign-invested enterprises and state-owned enterprises grew by 17.1% and 16.8%, respectively. Wang Jun, Deputy Commissioner of the General Administration of Customs, introduced at the press conference held by the State Council Information Office: Overall, China's foreign trade achieved remarkable results in H1. Meanwhile, the current external environment remains complex and volatile. The World Bank believes that the global economy is facing pressures from rising energy prices, intensifying inflationary pressure, and expectations of monetary policy tightening, leading to a weakening growth outlook. IMF forecast data shows that world economic growth is expected to slow from 3.5% last year to 3% this year, and the growth rate of goods and services trade volume is also expected to slow from 5% last year to 3.5% this year. In H2, China’s foreign trade will face some pressure, but with strong innovation momentum, robust market vitality, and a high level of openness, the fundamentals of foreign trade will remain solid, and the positive momentum in foreign trade development is expected to continue. Based on data released by the General Administration of Customs, SMM compiled the import and export situation of selected products in the metals industry, as follows: Exports: Rare earth exports in June 2026 5,104.8 mt, down 34.1% YoY vs June 2025 . Cumulative exports from January to June 2026 30,482.8 mt, down 6.4% YoY vs January to June 2025. Steel exports in June 2026 10.32 million mt, up 6.6% YoY vs June 2025 . Cumulative exports from January to June 2026 5,487.4 mt, YoY down 5.6 % vs January to June 2025. Unwrought aluminum and aluminum semis exports in June 2026 711,000 mt, up 45.4% YoY vs June 2025 . Cumulative exports from January to June 2026 3.396 million mt, up 16.3% YoY vs January to June 2025. Imports: Iron ore and concentrates imports in June 2026 112.689 million mt, up 6.4% YoY vs June 2025 . Cumulative imports from January to June 2026 628.868 million mt, up 6.3% YoY vs January to June 2025. Copper ore and concentrates imports in June 2026 2.335 10kt, down 0.6% YoY vs June 2025 . Cumulative imports from January to June 2026 14.609 10kt, down 0.9% YoY vs January to June 2025 . Coal and lignite imports in June 2026 42.779 10kt, up 29.5% YoY vs June 2025 . Cumulative imports from January to June 2026 225.4 million mt, up 1.7% YoY vs January to June 2025 . In June 2026, rare earth imports reached 6,261.5 mt, down 25.3% YoY from June 2025 . In January-June 2026, cumulative imports totaled 53,886.6 mt, down 6.1% YoY from January-June 2025. In June 2026, steel imports reached 441,000 mt, down 6.2% YoY from June 2025. In January-June 2026, cumulative imports totaled 2.696 million mt, down 11.3% YoY from January-June 2025. In June 2026, imports of unwrought copper and copper semis reached 478,000 mt, up 3% YoY from June 2025 . In January-June 2026, cumulative imports totaled 2.491 million mt, down 5.3 % YoY from January-June 2025.

Taiwan's cold-rolled steel imports reached 102,000 tonnes in June, with Chinese products accounting for 98,000 tonnes. Market participants estimate that 1B grade steel made up at least 80% of these shipments. Although anti-dumping concerns deter buyers from standard CQ1 materials, transactions concentrate heavily on 1B grade instead. Domestic consumption in China is weak because of sluggish home appliance and automotive manufacturing. Although China's new energy vehicle exports rose by 65% to 5.1 million units in the first half of 2026, steel mills reported lower-than-expected cold-rolled order volumes. Exporters report stagnant international activity, noting a prolonged absence of cold-rolled export deals amid frozen global inquiries.

A written parliamentary question posed to the European Commission asked: "What monetisable compensation does the Commission envisage for downstream producers whose embedded costs originate upstream, and who do not qualify for the decarbonisation fund?" Commissioner Hoekstra's July 14 response offered no direct answer, pointing instead to the Temporary Decarbonisation Fund — designed primarily for large EU ETS installations — with a vague note that it "may also decrease associated downstream costs," with no obligation, guarantee, or figure attached. Critics note that large integrated steelmakers benefit from multiple layers of protection including tariffs, quotas, free ETS allowances, and decarbonisation funding, while import-dependent SMEs and downstream processors face rising procurement costs, CBAM obligations, quota cuts exceeding 45%, and heavy administrative burdens — with no cumulative impact assessment ever published by the Commission. Meanwhile, steel import quota data remains poorly updated, with the Commission confirming it will update TRQs only once daily with no real-time data, and declining to recognize the "Total awaiting allocation" figure as legally binding.