KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Key Takeaway: China’s steel exports have surged to a nine-year high, but trade tensions, dumping accusations, and protectionist policies are threatening their sustainability.
China’s Steel Export Boom
- October Exports: Over 11 million tonnes, a near-record high and the most in nine years.
- Driving Factors:
- Surplus caused by China’s property crisis and stagnant domestic demand.
- Heavy reliance on exports to developing economies like Southeast Asia and the Middle East through the Belt and Road Initiative.
Challenges Ahead
1. Trade Tensions and Anti-Dumping Actions
- 25 anti-dumping investigations against Chinese steel this year, the most since 2016.
- Trading partners raising barriers:
- Vietnam: Limiting imports and re-exporting excess steel, exacerbating the global glut.
- Japan and South Korea:
- Anti-dumping probes and calls for tighter controls on steel rerouted via third countries.
- Domestic markets face pressure from cheap Chinese steel undercutting prices.
2. Protectionism Under Trump’s Presidency
- Analysts warn of ripple effects on global steel trade from Trump’s protectionist policies, even though direct exports to the US are limited.
- Short-term Strategy: Chinese mills may attempt to boost exports further before new tariffs take effect, worsening market oversupply.
3. Market Saturation in Developing Economies
- Southeast Asian and South Asian markets are reaching saturation, raising costs for Chinese mills to export further afield.
- Philippines and India: Rising export tonnage is met with falling values, signaling pricing pressure.
Impacts on Global Players
- Japan and South Korea:
- Domestic producers face shrinking market shares and declining profit margins.
- Japan plans to extend anti-dumping rules, while South Korea investigates Chinese stainless steel imports for unfair pricing.
- Global Steel Market:
- Cheap Chinese steel, often 10%-20% less expensive, has dragged prices down worldwide.
- Major players like ArcelorMittal and Nippon Steel are calling for stronger trade protections.
Outlook
- Without major policy shifts from Beijing, such as re-inflating the property market or large-scale infrastructure spending, domestic steel consumption is unlikely to rebound.
- The volume-over-value strategy will strain Chinese mills if export growth slows further.
- Analysts predict Chinese steel exports may decline by 2026, with more trading partners stepping up anti-dumping measures and tariffs.
China’s reliance on aggressive export strategies has kept its steel mills running, but global trade barriers and economic headwinds are setting the stage for a turbulent future.
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