China Iron and Steel Association: China should not be the supply base of world steel industry

BEIJING (Asian Metal) 1 Jul 10 – Ministry of Finance recently issued a notice to remove 48 steel products export tax rebates, effective on July 15. Shanghua Shan, the Secretary-General of China Iron and Steel Association, believes that this shows China’s increasing cautious attitude towards the export of steel and other resources.

At present, the supply of steel raw materials needed for the production is not rich for China and the imported iron ore takes up to 70%. At the same time, China’s steel export increases to 4.Asian Metal Copyright At present, the supply of steel raw materials needed for the production is not rich for China and the imported iron ore takes up to 70%.Asian Metal Copyright94 million tons in May, up by 265.Asian Metal Copyright At present, the supply of steel raw materials needed for the production is not rich for China and the imported iron ore takes up to 70%.Asian Metal Copyright9 percent compared with the same period of last year.Asian Metal Copyright9 percent compared with the same period of last year.Asian Metal Copyright “This is a kind of contradiction,” said Mr.Asian Metal CopyrightBEIJING Asian Metal 1 Jul 10 – Ministry of Finance recently issued a notice to remove 48 steel products export tax rebates, effective on July 15.Asian Metal CopyrightShang, pointing out that China should not be the supply base of world steel industry and a large number of exports of steel products is not supposed to be encouraged.

According to him, the export of steel products is equivalent to the export of raw materials and energy, which is also an increase in domestic pollution. “China’s net export of steel products will amount to 50 million tons per year based on the current highest level of over 400 tons per month, accounting for 10% of world steel output,” he said, adding that this is definitely a shock to world steel market and will cause some unnecessary anti-dumping countervailing trade disputes.

Shan believes the elimination of export tax rebates will have some impact on the domestic steel market in the short term, but a sharp price decrease will not happen in the long run and this is also conducive to the development pattern. "Since we mainly reply on imported raw materails, export of steel means an increase of imports.Asian Metal Copyright At the same time, China’s steel export increases to 4.Asian Metal Copyright If you export 50 million tons of steel a year, it will be equivalent to an extra import of 75 million tons of iron ore,” he said, adding that China’s steel export should be a kind of an indirect export on the basis of meeting the demand of domestic manufacturing industry.