China is set to export the most steel this year since 2016, say analysts, as the weakening yuan and competitive prices help the world's biggest producer offload surplus metal due to weak demand at home.

China's massive steel industry has been hard hit by a months-long slump in the country's huge property sector, pushing steel prices to three-year lows in May.

But strong demand mostly from Asia and Africa is helping keep a lid on stocks and allowing mills to continue operations.

Steel exports in the first five months were up 41 per cent compared to a year ago, customs data showed, and traders said they have recently seen improved overseas buying appetite.

Exports for 2023 could easily surpass the 67.32 million metric tons shipped last year, said three analysts who expect volumes of up to 77 million metric tons.

"The most direct reason is that a weaker yuan is beneficial for exports. Also, (China's) export prices are appealing," said Pei Hao, a Shanghai-based senior analyst at international brokerage FIS.