China''s steel exports surge 77 per cent in May

14 Jun 2007

Mumbai: China, the world''s largest steel maker, witnessed a 77-per cent surge in export of rolled steel in May despite a drop a month earlier, officials of China ''s commerce ministry said.

The country exported 6.17 million tonnes of rolled steel last month, a decline of 13.8 per cent from the record level in April of 7.16 million tonnes, but a year-on-year growth of 76.8 per cent.

Cumulative exports for the January-May period amounted to 27.44 million tonnes, up 116.7 per cent from a year earlier, latest customs data showed.

Chinese firms had exported as much steel as possible before the government began imposing duties on steel exports from June 1 to rein in expansion of the domestic steel industry.

China imported 7.28 million tonnes of rolled steel in the first five months, down six per cent from the previous year.

Iron ore imports into the country stood at 161.15 million tonnes in the five-month period, up 21.4 per cent, Xinhua news agency reported.

China has been trying to rein in steel exports to ease tensions with its trading partners, whose own steel makers are struggling against a flood of low-cost Chinese imports. Chinese leaders also worry about the industry''s rising energy demands and environmental impact.

The government has eliminated rebates and imposed a new tax on exports to discourage foreign sales.