Steel exports to plunge
31 July 2007
Chinese crude steel exports may fall by as much as 60% in the second half of 2007, state media reported. According to a report by the China Iron and Steel Association, crude steel exports are expected to fall from 30.6 to 12.24 million metric tons in the second half of the year. The report cited government policies designed to rein in the domestic steel industry and cool the overall domestic economy. Chinese officials lifted export rebates on more than 80 steel products and doubled the export tax this year in an attempt to cool the sector. The industry report called for steelmakers to reduce planned production and cancel expansion projects to avoid price instability caused by domestic oversupply.