December 02, 2008

NDRC indicate further restrictions to curb Chinese steel export

Xinhua reported that China may come up with more restrictions to curb steel exports, including imposing licenses to export companies, restricting steel projects in the processing sector.

The report cited Mr Hu Chunli a senior official with China's National Development and Reform Commission as saying that restricting steel export will still be the tendency and China would reduce its steel production to avoid overcapacity. He added that China has already taken six measures to discourage steel export and export rebates for many steel products had been lowered to zero while tariff for some steel products also reached 15%.

Mr Hu said that strong demand in the international market high profit of exporting and weak influence of curbing policies are the main reasons for the increasing exports. He added that "As long as the steel export generates more profit, Chinese enterprises will still expand their exports. Along with the declining investing in the steel sector, implementation of reducing emission and energy saving and new curbing policies, steel export will finally go down.”

According to the latest statistics released by China Customs, China’s steel products exports stood at 5.38 million tonnes in August, down by 9.4% over last month. However, in the January to August 2007, China's steel and steel billets exports still jumped by 83.8% and 10.9% to 45.08 million tonnes and 5.61 million tonnes.