According to the Customs data, Beijing's efforts to rein in steel export and appreciating CNY are bearing fruit, as China’s steel export fell by 19.3% YoY to 11.39 million tonnes in the first quarter although March shipment rebounded from February to 4.16 million tonnes but still down by 22.6% YoY from March 2007.

In fact Chinese steel exports have recorded a six month decline since last July.

The tax rebate change has clearly put a squeeze on export of some lower end products such as wire rods, rebar products and section, which drop a cliff off 44% and 36% respectively in the first three months due primarily to 15% export tax.

By contrary, 5% export tax on steel plate has resulted in 8% decline of plate export in the review period and the export volume of plate has risen up to 50% of China's total steel export.

Meanwhile, the steel export to Middle East has also dropped 57% in Q1 as a result of the export tax and the wire rod/bar export down as much as 92%.

Mysteel analyst also notes that foreign demand for shipbuilding plate in particular from South Korea and Vietnam has posted notable growth in the first quarter despite overall steel export decline. As a result, the medium plate export amounts to 2.19 million tonnes in Q1 up by 36% YoY from the year before.

(Sourced from MySteel.net)