Three cost drivers are converging to push Chinese steel export prices higher over the next 30ā45 days. If you havenāt locked in your Q3 procurement yet, delaying may cost you dearly.
First, export compliance fees are rising. Since China reinstated the steel export license system in early 2026, each shipment now requires administrative processing and documentation. This has added $8ā12/ton in hidden compliance costs and extended lead times by 7ā10 days.
Second, ocean freight to key markets is climbing again. Freight rates from major Chinese ports to Jebel Ali (UAE), Lagos, and South American destinations have risen 18ā25% over the past month due to reduced vessel capacity and rerouting around geopolitical hotspots. Some carriers have announced general rate increases effective mid-June.
Third, raw material and energy costs remain elevated. Coking coal and electricity prices in northern China have inched up, directly affecting hot-rolled coil (HRC) production costs ā the base for all galvanized and pre-painted products.
What does this mean for you? A typical 20āton container of PPGI or galvanized coil will likely cost $300ā600 more in total landed price by late July.
Smart buyers are placing orders now to secure current prices and avoid the summer cost spike. CNB Group still holds stock at preāadjustment prices. Once these lots are gone, the next batch will reflect the higher cost structure.
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