Oct. 29 (Bloomberg) -- China’s steel exports will drop “significantly” in the fourth quarter from the first half because of the removal of a tax rebate, yuan appreciation and lower demand, the China Iron and Steel Association said.
“With the strengthening of the Chinese currency, steel product exports will drop significantly in the fourth quarter from the first half,” Luo Bingsheng, vice chairman of the association, told reporters in Beijing.
The yuan has gained 6.3 percent against the euro and 2.1 percent against the dollar so far this year. China removed steel export tax rebates in July, raising the costs for steelmakers, the association said today in a statement.
“In the overseas markets, steel supplies have exceeded demand” leading to lower demand and prices,” Luo said. Chinese steel exports to the U.S. in the first eight months fell 12.5 percent from a year earlier because of trade disputes between the two nations, he said.
China’s steel output dropped to 47.95 million metric tons in September, the lowest level this year, as provinces began restricting power to mills to meet energy-consumption targets. China’s gross domestic product grew 9.6 percent in the third quarter, the smallest gain in a year.
To contact the editor responsible for this story: Andrew Hobbs at email@example.com