The government controls could reduce steel exports from China in the second half

analysts steel industry predict that Chinese steel exports continue to rise this month despite government measures to discourage overseas sales.

The government on Monday imposed taxes on exports of 5 to 10% on more than 80 steel products including wire, sheet and plate steel, and increased export taxes 10 to 15% on basic materials such as logs, steel ingots and pig iron from 1 June

However, higher export costs combined with the seasonal decline in demand on the world market in summer would probably lead to a fall in exports later this year, said Jia Liangqun analyst level .

Xizeng Zhou and Li Hongliang, of CITIC Securities, confirmed the continued steady increase in exports and that export taxes lead to higher price increases in international prices of Chinese exports.

Higher export taxes were the government’s response to the April figures showing a record export of 7.16 million tonnes, well above the forecast maximum of 6.5 million tonnes.

“The market will react this time,” said Jia.

Analysts agree that the measures do not succeed, however, to reduce exports in the short term, and would probably start to take effect in July.

Export figures for the month of May would still be “striking”, probably even higher than in April, said Zhou Xizeng and Li Hongliang, steel companies preparing to increase exports in anticipation of controls more stringent.