China’s imports of finished steel hit a more than 16-year high in September but are expected to start receding from October.

Steel imports were up 29% month on month to 2.885 million mt in September, after falling by 14% on the month in August, Chinese customs data released Oct. 13 showed.

The imports in September more than doubled year on year, and were the highest monthly volume since May 2004, the data showed.

A possible reason behind the surge was that imports of high-end steel products supplied directly to Chinese manufacturers had recovered, in tandem with the recovery in operations at overseas steel mills.

But imports of carbon steel dropped in September as fewer orders were seen placed in July-August, sources said.

China's finished steel imports comprised mainly hot-rolled coil products from India and Vietnam. But imports have started falling as demand in those markets improved as lockdowns measures eased. As such, China's finished steel imports are likely to see a drop in October.

-- Analyst Jing Zhang, Analyst Joy Zhuo