Customs data shows total Chinese exports of steel products, last year, reached an “all-time” high figure of almost 94 million tonnes. This equates to a year-on-year increase of more than 50 percent. To put the latest figures into context, Chinese steel exports in 2014 were equivalent to 90 percent of the total output from the world’s second largest producing nation – Japan, over the same period.

The removal of tax rebates on boron-added steel exports is likely to result in a slight reduction in supply in 2015. This is because substitute alloying elements for boron are more costly – thus making the resultant alloy steel marginally more expensive in the market.

However, Chinese mills have built up a solid customer base around the world through their ability to offer competitively priced steel products. They will be difficult to dislodge from their dominant position in global steel trade.

Moreover, the latest steel export price reductions will help their cause. Product quality from the Chinese mills has improved significantly in recent years and is fit for purpose for a wide range of applications in the engineering and construction industries.