SteelOrbis Shanghai
Some sections of the Chinese media recently republished news from last year concerning the Chinese government's adjustment of export rebates and tariffs, giving rise to a certain amount of market confusion. On May 29, a spokesman for the China Iron and Steel Association (CISA) issued a formal denial on the matter, going on to state that China has achieved remarkable results in its policy aimed at curbing steel exports.
The CISA spokesman said that the recent rumors had disturbed not only normal production and trading, but also imports and exports, and as such was harmful to stable economic activity.
In the first four month of 2008, China's exports of finished steel and semi-finished steel dropped sharply, effectively showing the effects of the country's macro-control policy aiming at curbing excessive steel exports.
Firstly, China's exports of finished steel and semi-finished steel totaled 16.251 million mt in the January-April period, down 32.1 percent year on year, equal to 11.1844 million mt in crude steel, down 40.86 percent year on year.
Secondly, exports of some steel varieties saw an improvement due to structural optimization. In the first four month of this year, in the context of the great slump in long products exports, flat rolled products have claimed a major place among China's steel exports. Meanwhile, China's exports to the EU during the period in question totaled 1.51 million mt, down 55.1 percent; exports to the US came to 997,000 mt, down 33.1 percent; however, steel exports to Vietnam rose 66.0 percent to 1.789 million mt.
Thirdly, based on the steel exports from January to April, it is estimated that China's semis and finished steel exports will total 48.75 million mt, down 20.33 million mt or 29.42 percent compared with the previous year.
The CISA spokesman also emphasized that if China's total steel exports amount to 48.75 million mt this year, accounting for nine percent of the projected 2008 crude steel production of 530 million mt, this could be regarded as a reasonable level. Supposing that 2008 steel imports reach 17.25 million mt, then the country's net steel exports would total 31.5 million mt, covering six percent or so of China's crude steel production in 2008.