Trade war set to slash China's steel exports, aggravating oversupply at home

BEIJING (Reuters) -China's steel exports are set to slump in the second quarter, threatening to exacerbate a supply glut at home, analysts and traders said, as the trade war and a wave of protectionism moving in its wake crimps export markets. Second-quarter shipments from the world's largest steel producer and exporter are forecast to fall by up to a fifth from the first quarter, said eight analysts and traders, who also expect exports to worsen further later in the year. Steel exports have been hit by a double blow as Washington's tariffs choke off the transshipment trade, where third countries resell Chinese steel to the U.S., and top customers like South Korea and Vietnam impose their own duties to avoid steel then being rerouted and dumped in their markets.