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MOC: Trade protectionism does little to overcapacity in steel industry

Thursday, 07 July 2016 09:53:00 (GMT+3)   |   Shanghai
       
Shen Danyang, spokesman at China's Ministry of Commerce (MOC) stated in the news briefing on July 5 that in the January-May period of the current year China’s finished steel exports totaled 46.28 million mt, up 6.4 percent year on year, with the growth rate down about 22 percentage points than that recorded in the same period last year. While China’s iron ore imports was up 9.1 percent on year-on-year basis in the given period.

“China’s steel output is mainly to meet the needs of domestic market instead of mass exports to other countries. China has been taking measures to control steel product exports in the hope of stability in international steel market, for instance, imposing more export duties and cutting export rebate rates on some steel products. In May this year, China’s finished steel exports totaled 9.42 million mt, only up 3.7 percent month on month, which is actually making contributions to the global market.” Shen Danyang stated, urging that the World Trade Organization (WTO) members should prudently take the trade remedy measures and impose trade protectionism, which will do little to solve the overcapacity in global industry. “China has always advocated strengthened dialogue and communication to cope with the issue of excess capacity amid sluggish economic growth and hoped that WTO members could adhere closely to World Trade Organization (WTO) rules and achieve mutual benefits,” Mr. Shen added.

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