China’s Ministry of Industry and Information Technology announced on its website that it will study and formulate a work plan to cut production this year, and implement a policy of controlling production capacity and output to ensure that the country’s crude steel volume production this year has decreased compared to the previous year.
Based on information related to real estate, infrastructure and manufacturing in China, steel consumption is likely to increase this year.
According to market participants, the reduction in crude steel production will lead to a sharp rise in steel prices. Therefore, there were rumors that cancellation of the export duty discount could be implemented.
Removing the 13% export tax rebate on hot rolled coil would result in a sharp increase in the export price of Chinese hot rolled steel and a sharp drop in the export price /quality ratio.