The Chinese government should adjust the steel export rebate policy "as soon as possible" to cope with increasing export pressure, said a senior official of the LangeSteel Information Consultation Co. Ltd.

The company's Chief Inspector Xu Xiangchun told the Economic Information Daily on Monday that the policy is a necessary response to the anti-dumping charges imposed on China by other countries. It will also help strengthen the macro control policy on the sector and step up the restructuring of the industry, he noted.

It is believed the rate for steel export rebate might be cut from the current 11 percent to 8-9 percent next month.

Industry insiders claim the slash of the export rebate by one or two percent would have little impact on steel producers' profit margins, but the symbolic meaning of the policy adjustment is greater than the actual effect, he said.

China exported 12.67 million tons of steel in the first five months of this year, up 35.1 percent on last year.

China's steel exports are facing increasing pressure as Australia and Indonesia have launched anti-dumping investigations against steel products from China.

China's steel prices have dropped sharply since late June as the market fears stricter macro control policy in the later half of the year.

Some industry insiders suspect that the central government may take more serious measures to curb excessive investment and slow down the country's overheated economic growth.

Source: Xinhua