China has cut steel export rebate by four percent, according to China's Ministry of Finance, which has already taken an action on steel export rebate decrease.
“Export rebate of all those heavy energy consumption, heavy pollution and resource related products especially for the primary steel products will be cut by around four percent or even more.”
The primary aim of this move is to save energy and reduce emission. It will be in favour of industry perfection in the long-term, but will lead to great fluctuations for steel industry during a short-term.
Li Gang, Researcher of Chinese Academy of International Trade and Economic Cooperation figured that however, some analysts did not believe this steel rebate cut will take place in previous time when the rumour emerged.
He said that reduction of the export rebate of all heavy energy consumption, heavy pollution and resource related products is not in adherence with the foreign trade law, while the government could realise its target through levying resource tax.

China steel prices in 30 major provinces have fallen for seven consecutive weeks, while bigger falls are expected to be limited supported by raw materials cost, official media quoted China's state planning agency as saying.
Average prices for main steel products fell to 4,746 Yuan (US$694.9) per ton this week, down to 1.45 percent from last week, but this was still 13.5 percent higher than a year earlier, data from the National Development and Research Commission showed.
The China Securities Journal said the regulator expected steel prices to have started bottoming out helped by raw materials cost and further falls would be limited. Spot iron ore prices have almost stabilised at US$152-154 per ton cost-and-freight this week, up by 1.3 percent from last week, industry consultancy Mysteel said. Construction steel prices were 4,252 Yuan per ton this week, 1.48 percent lower from a week ago, but up 15.16 percent from a year earlier, while flat products prices fell 1.67 percent from last week but were up 15.93 percent from a year ago.
Chinese steel mills including Wuhan Steel, Anshan Steel and Shagang have dropped July steel prices by up to 1,000 Yuan per ton, after Baosteel set benchmark prices lower, adding to concerns that uncertainties over steel demand would continue to depress prices for the remainder of this year.

The Chinese CEIEC company has expressed its interest in funding the creation of Bolivia´s biggest Iron and Steel industry in Mutun (Santa Cruz) iron deposit.
According to the President of the state-run Mutun Iron and Steel Company (ESM), Sergio Alandia, the plan would not affect the presence and agreements signed with the Indian Jindal Steel Company, despite differences with the Executive.
Alandia said that the Chinese company is interested in operating Mutun iron deposits with the building of a plant that could turn out 100 million tons of iron in three years. If the first results are good, then they will open a big iron mine for exporting. The 50 percent of the mine is part of an agreement signed with Jindal, however, the iron deposits are huge and can be exploited by various companies interested on investing in the region, noted Alandia.
According to ESM President, South Korean Hyundai Steel Company also expressed its interest in investing in Bolivia, and will send a technical commission in July to the South American country..

China Steel Corp. (CSC) said that its allocation in July and August for domestic customers has been fully booked and so has July's allocation for export.
Now only export allocation for August is available but it may be running out soon after the company announces a new price later this month.
According to CSC, its buyers are willing to place orders because they foresee that the steel price may hike further as raw material prices go up in the future.

China Steel Corp., Taiwan's biggest producer, said its mill will run at full capacity in July and August, and its No. 1 furnace restarted operations. “The furnace, closed in January for regular repairs, will reach full capacity within a month”, Chung Le-min, Executive Vice President, said. The furnace can produce 1.9 million metric tons of steel a year. The Taiwanese mill resumed production at the furnace amid concerned steelmakers in China, Taiwan's biggest overseas market, may cut output because of falling prices including its Dragon Steel Corp. unit, the Kaohsiung-based company has five furnaces with a combined annual capacity of 12.5 million tons

China Metallurgical Construction Corporation (MCC), which already runs a copper mine in Pakistan's Balochistan province, is showing renewed interest in expanding and modernising Pakistan Steel Mills (PSM), the country's only integrated steel-manufacturing plant at a cost of US$ 2.2 billion.
The Chinese company plans to set up a new plant at a cost of US$1.2 billion within two years in the first phase of the expansion project, capable of producing 2 million tons of steel per annum. In the second phase, MCC would modernise the existing PSM plant at a cost of US$1 billion in another two years.
Local iron and steel traders have already urged the government to look into the looming problem of acute shortages of steel products, which may hamper construction activity in the country. Since Pakistan Steel is not in a position to meet the growing requirement of steel in the country, local merchants have to import products to meet their growing requirements of billets and re-rollable scrap.
A visiting MCC delegation told Mian Manzoor Ahmad Wattoo, Minister for Industries and Production, that the revamping would raise PSM's production capacity to 3 million tons from the present 1.1 million tons per annum (mtpa). The Minister assured the Chinese that a final decision on the project would be made very soon after an in-depth study of their proposals, according to a Daily Times report.
MCC, China's leading multi-disciplinary multinational company, is known for its experience in scientific research, industrial engineering and international trading capabilities. It is a major driving force behind the growth of China's steel industry and it has carried out construction of many strategic steel production bases. The company produced a 500-page report on the expansion of PSM in 2005 after another delegation expressed interest in expanding PSM in 2004.

China has announced that the nine percent export rebate on certain steel products, primarily flat products such as HRC, CRC, GPC, colour-coated sheets and long products such as I-steel, H sections and angle steels stands withdrawn wef July 15, 2010.
Prasad Baji of Edelweiss Securities Limited in a note said that these constitute 55 percent to 65 percent of the products exported out of China.
Baji said “To disincentivise excessive steel production, especially of low end products. Strategically, China wants to continuously move up the value chain in its exports and not be seen as a exporter of cheap, low end items.”
He wrote “A tightening measure on the domestic steel industry will disincentivise future steel capacity addition and improve demand supply dynamics. Increase domestic supply so as to keep domestic prices low.”
He added that “As a follow on objective, China will seem to be doing the politically correct thing by not subsidising exports and therefore, improving trade relations with the world and avoiding issues of anti dumping charges.”
Baji also said that this would lead to strong production cuts in China and thereby, reduce raw material prices and ultimately, it would reduce the strong pricing power of the miners.
He pointed out that this is positive for non Chinese steel players and negative for mining companies