Dec. 20 (Bloomberg) -- China, which produces one third of the world's steel, may reduce net exports of the alloy by 20 million metric tons next year by further raising tariffs on so- called semi-finished products, an industry official said.

Chinese steel-product exports for the first 11 months were 58 million tons, a 55 percent gain from a year earlier, according to customs data. In November, shipments fell 11 percent on year.

``If the exports rebound, the Chinese government may keep raising export duties on the steel semis until the shipment falls back,'' Wu Xichun, consultant and former chairman from the China Iron and Steel Association, said at a conference in Beijing today.

China, seeking to curb a record trade surplus, cut tax rebates and raised duties on steel shipments this year. The Asian nation's exports have pressured rivals, leading the European Union last month to threaten tariffs to shield its producers, including ArcelorMittal, the world's largest steelmaker.

Chinese steelmakers may cut product shipments 15 percent next year from the estimated record 62 million tons this year, the China Securities Journal reported Nov. 29, citing China Iron and Steel Association Vice Chairman Qi Xiangdong.

Apparent steel consumption may rise 13 percent this year, and the rate of growth will slow to 10 percent in 2008, Wu said.

To contact the reporters for this story: Xiao Yu in Beijing at yxiao@bloomberg.net; Helen Yuan in Shanghai at hyuan@bloomberg.net

Last Updated: December 19, 2007 22:21 EST