It is reported that Chinese ministry of commerce has sent delegates to Shandong and Hebei for getting a clear picture of the losses suffered by local steelmakers and the ministry is expected to submit a report to Beijing later.

In fact, sources reveled in late October that the central government is considering a lift of tax rebate on high value added steel exports at an appropriate timing.

     According to data released by China Iron & Steel Association, China's steel export has collapsed since September due to the fallouts of global economic woes. In the first Q3, China shipped out 48.46 million tonnes of finished steel products, down 2.14% from the year before. And semis export drops 81% to 4.84 million tonnes in the review period.

　　CISA said that steel mills estimate the export order for the last quarter and Q1 of next year has halved and the steel export is set to decline further. As many as 60% of CISA member mills have reported loss till October, and the combined loss hits RMB 1.15 billion in the first 9th months of this year, 18 times of that the year ago.

　　Mr Liu Baoyao, analyst with Guangfa Securities said that, economic turbulence has hurt steel demand significantly and left the steel sector end in red across the board. Therefore, Beijing might take steps to stimulate steel export, such as cut the export duty and hike export rebate.

　　Mr Qi Xiangdong, GS of CISA said that, steel mills would face greater losses in days to come as a result of gloomy steel export and domestic steel price dive. The central government is mulling over a plan to raise up tax rebate on certain high value added products.

　　Meanwhile, Chinese steel exporters have shifted focus to emerging markets, like Latin America. China's steel export to this region has increased 23% so far this year, while its shipment to other areas falls 9%.