October 12, 2008

Chinese steel exports rebound on domestic and global price gap

China exported 4.16 million tonnes of steel in March an increase of 1.05 million tonnes from February, spurred by the widening price gap between the domestic and international markets.

Mr Xu Xiangchun industry expert said international steel prices rose more sharply than domestic prices, with the price gap extending to USD 100 to USD 200 per tonne which propped up more exports.

He said the rising exports in March were in part due to the undelivered goods in February, and that the tax rebate abolition for the exported energy-consuming goods was beginning to bear fruit.

Mr Xu said despite the increase from February, exports declined from the same period last year and that more tightening policies to come out if monthly exports surges again.

Mr Luo Bingsheng vice chairman of China Iron and Steel Association, forecast the country's exports of crude steel would decline to 52.5 million tonnes this year from 73.07 million tonnes in 2006, largely due to the government's effort to curb the exports of the alloy of iron and carbon.