Shanghai Securities News reported that both China"s steel imports and exports fell in the first month of this year, with exports hitting record low since March 2006, fanning concerns that related depts. may further adjust tax policy to support exports
According to data released by customs steel exports in January declined 53.8%YoY or 39.7%MoM to 1.91 million tonne.
Domestic leading steel mills have reported low orders in the first quarter. Baosteel, the top steelmaker in China, reported normal orders in the first trimester and planed to ship out 2.7 million tonnes of products this year, leveling with the tonnages recorded last year. Hebei Iron & Steel Group also eyes low exports at the moment. And Angang forecasts its shipment to fall by 50% from last year to 1.26 million tonnes in 2009.
Official from Ma"anshan Steel told reporters "It is quite difficult to win orders at the moment due to severe competitions despite they are generally lower priced ones."
According to senior Mysteel analyst Mr Xu Xiangchun, China"s steel export is set to slump in light of the withering foreign markets and that related government bodies should further adjust steel export duties to stabilize the materials" export.
Official from China Iron & Steel Association said the less than 2 million tonnes of steel exports are marginal compared with the 500 million tonnes to 600 million tonnes of production capacity. However, the tariff policy on the industry is the most rigorous compared with other sectors, since a considerably part of products in the sector suffers export duty.
The official said "The low export tonnages in January have sent a signal that current industry policy are not so forceful to help boost market recovery, and hope related dept. can made further adjustments on export taxes."