Bloomberg reported that world’s biggest steel producer and exporter China, which is revamping the industry to curb pollution, limit production and keep more supply at home, may face wider crude-steel output cuts as the nation moves to reduce emissions in key sectors. China Iron & Steel Association said on its Wechat channel on Sunday that “There will be more notable reductions in crude steel output along with government-led environmental checks, the, outlining the prospects for the steel market in the second half. Daily crude-steel output at major mills fell 5.6% in the first ten days of July from June, with most of the cuts taking place at plants in Shanxi, Hubei and Hebei provinces and mills including China Baowu Steel Group and HBIS Group. Steel exports may drop after the country imposed higher tariffs on overseas shipment. Domestic demand for steel will also slow in the second half after industries front loaded consumption.”China Iron & Steel Association added “Steel prices may stabilize at the current range if supply and demand is relatively balanced, though continued increases in iron ore and other raw material prices are expected to squeeze mills’ margins, it said. Mills should focus on reducing costs of raw materials to maintain operational stability.”After 30% YoY surge in Chinese steel exports in H1 of 2021 to 37.4 million tonnes, the news of Chinese government imposing a tax on steel exports to cool export is in forefront recently. According to people familiar with the matter “Potential rates being discussed range from 10 to 25% and products include hot rolled coil. Officials are seeking to implement the levies in the third quarter, though they are still subject to final approval.”Chinese government’s attempts to cap steel output at below last year’s record have had limited success so far, with production climbing 12% in the first half from a year earlier as surging steel prices lifted margins. Still, June output declined 5.6%.