----Interview with Qian Yu
Director of International Trade Office
Jilin Jianlong Iron and Steel Company
Founded in May 2001, Jilin Jianlong Iron and Steel Co., Ltd. is engaged in coking, ironmaking, steelmaking, hot rolling, cold rolling, galvanizing, and color coating. The company boasts an annual steel production capacity of 5 million tons. Adopting a fine steel strategy, it has developed a wide range of products, including automobile structural steel, cold-formed steel, non-oriented electrical steel, pipeline steel, welded gas cylinder steel, structural steel, weathering steel, checkered coils, and hot-rolled coils (HRC). The width of its HRC ranges from 850mm to 1300mm, with a thickness of 1.4mm to 14mm. Jilin Jianlong supplies products across East China, South China, North China, and Northeast China, and exports to Malaysia, South Korea, Pakistan, the Philippines, Vietnam, the United Arab Emirates, and other countries.
Asian Metal: Good morning, Mr. Qian. Welcome to the interview. Could you please briefly introduce the development history and equipment composition of Jilin Jianlong Steel?
Mr. Qian: My pleasure. Jilin Jianlong Steel is a subsidiary of Beijing Jianlong Group, which owns 14 steel enterprises with a combined annual production capacity of 43 million tons. Jilin Jianlong Steel, established in May 2001, operates two 1,800m3 blast furnaces and two 120-ton converters. We run a 1,450mm HRC production line with an annual capacity of 5 million tons. Of that, about 800,000 tons are consumed by our CRC (cold-rolled coil) production lines and 200,000 tons by our silicon steel lines, totaling 1 million tons for internal use. In 2019, we launched three CRC lines (two 1,450mm lines and one 1,250mm line). We also operate one HGI (hot-dip galvanized iron) coil line and one aluminum-zinc coil line. Additionally, we have two PPGI (pre-painted galvanized iron) lines. In 2024, we introduced two advanced twenty-roll silicon steel lines with a total production capacity of 250,000 tons per year.
Asian Metal: What steel products does Jilin Jianlong export, and where are they mainly shipped?
Mr. Qian: Currently, we primarily export HRC, CRC, and HGI coils. PPGI coils are mainly supplied to Northeast China. As for silicon steel, no firm export contracts have been signed yet, but we are actively exploring international markets. In 2024, we exported approximately 130,000 tons of steel and aim to reach 300,000 tons in 2025. Southeast Asia is our main export destination, but we also serve markets in the Middle East, Central Asia, Africa, and South America.
Asian Metal: What advantages and challenges do you face in exports, and how do you plan to address them?
Mr. Qian: To be candid, as an inland steel mill, we face inherent disadvantages when it comes to exports. However, we are determined to grow our export business and strive to capitalize on our existing strengths. We operate precision production lines, and the quality of our CR-based raw materials exceeds national standards. Additionally, we maintain consistent coil weights and utilize direct rail transport to Bayuquan Port, ensuring delivery within 2–3 days—offering a significant logistical advantage. The main challenge we face is the wave of anti-dumping policies imposed by key markets like Vietnam, Turkey, and South Korea since last year. In response, we’re shifting more supply toward end-users and tailoring differentiated products for each client to mitigate trade risks.
Asian Metal: China exported approximately 111 million tons of steel in 2024, up 22.7% year-on-year. In 2023, exports totaled 90.264 million tons, a 36.2% increase. What do you think are the primary drivers behind this continued growth?
Mr. Qian: The increase is primarily driven by national policies that encourage overseas market expansion and the proactive strategies of domestic steel producers. Our export prices remain competitive globally. Moreover, China's well-developed infrastructure and high export efficiency have significantly supported the continued growth in export volumes.
Asian Metal: While export volumes continue to grow, prices are on a downward trend. According to Asian Metal statistics, HRC export prices fell by 19% YoY (USD 110/t) in 2024, while domestic prices declined by about 15% (USD 79/t). What’s your view on this persistent price decline?
Mr. Qian: Prices are influenced by both supply and demand dynamics. Domestic mills continue to lower prices to stimulate sales. The ongoing downward trend in domestic prices undermines the confidence of both steel producers and international buyers. Additionally, the depreciation of the Chinese Yuan has placed further downward pressure on export prices.
Asian Metal: Could you briefly describe the current HRC export market situation?
Mr. Qian: From what I’ve seen, many domestic steelmakers have raised their export targets for 2025—some even doubling them. However, as export volumes surge, so too do anti-dumping investigations and trade tensions, which pose real obstacles. That said, I don’t believe we should take a pessimistic view. The international market is gradually recovering, and we anticipate overseas demand will grow by 5%–6% YoY in 2025. Moreover, anti-dumping duties may increase the cost of local raw materials in some countries, prompting them to purchase more semi-finished products, indirectly boosting China’s steel exports.
Asian Metal: On March 28, five central ministries jointly issued a regulation prohibiting tax-free steel exports. What’s your take on this, and how do you forecast HRC export volumes and prices for Q2?
Mr. Qian: Tax-free exports have declined significantly since the policy was introduced. While some ports still permit these exports through the end of April, we expect full enforcement by May, with all exports transitioning to regular tax-inclusive channels. The price gap between tax-free and taxed exports has narrowed recently due to a decline in the latter. Although end-users may initially resist higher prices for compliant exports, they will eventually adapt. Meanwhile, exporters are actively exploring high-demand markets in Africa, the Middle East, and South America, which should prevent a sharp decline in export volumes. We estimate China’s HRC exports may fall by 20% YoY in Q2, with full-year volumes declining by 5%–10%. However, considering the recent upward trend in international prices and potential stimulus measures—such as interest rate and reserve ratio cuts—we expect export prices to rise from the current USD 450–460/t FOB China to USD 490–500/t in Q2.
