Shan Shanghua, general secretary of the China Iron and Steel Association (CISA) has stated that China will not support a policy in favor of strong volumes of steel exports.
Mr. Shan stated, "To export finished steel is to export raw material and energy, and this means increasing pollution in our country. Based on the current export situation, China's net steel exports exceed 4 million mt in a single month, equivalent to 50 million mt for the whole year, which is equal to 10 percent of the total world output."
In Mr. Shan's view, the cancellation of the export rebate will have some effect on the domestic steel market, but is not likely to result in significant price declines in the steel market. He added, "Since we are mainly dependent on imported raw materials, to export steel means increasing imports of raw material, which will inevitably lead to price increases of iron ore. Fewer steel exports will limit the price increases of iron ore."