The China Iron and Steel Association (CISA) stated on August 3 that, influenced by international protectionism and the Chinese government's export rebate rate adjustment, China's overall steel product export volume is expected to decline in the second half of the current year.
According to the CISA data, in the first half of 2010 China exported 23.58 million mt of finished steel and 116,100 mt of semi-finished steel, with the aggregate export volume equivalent to 25.2 million mt of crude steel, up 15.25 million mt or 153 percent year on year. CISA vice president Luo Bingsheng commented that China's steel product export volume had increased massively in the first six months mainly due to the rebound of demand in the international market, adding that the export volume will decline in the second half of the year.
Mr. Luo said that, first of all, China's export rebate rate adjustment will limit its exports of low value-added steel products. He went on to say that the increasing export cost and the appreciation of the RMB will also have a limiting effect on steel exports. Furthermore, the CISA official remarked, supply exceeds demand in the international market, exerting downward pressure on international steel prices, and this will also contribute to the decline in steel exports from China.