The Chinese government is likely to adjust or cancel the export tax rebates on steel. Chinese traders said that the adjustment of tax rebate will be able to allow steel mills to focus on the domestic market, instead of excessive production for overseas demand.

Some market participants indicated that the steel price will generally rise whether or not the tax rebate will be reduced or canceled. Chinese steel mills will no longer be the major steel supplier in the world, and Japan, South Korea, Taiwan, Vietnam, India, and other Asia-Pacific regions will replace this role.

The steel prices will be affected by the supply and demand of various steel products and their importance controlled by China.