To abolish and lower export rebate rates cannot effectively curb China's steel products export, and a good example is that China's steel product export has still maintained growth trend since this year, said Qi Xiangdong, vice secretary-general of China Iron and Steel Association (CISA) at the "5 East Asia Conference on Steel".

   China remained a net steel importer in 2005, and only turned to be a net exporter in 2006. China accounts for 36 percent of the world's steel output and about 10 percent of the world's total steel export at present. As a big steel producer with annual output exceeding 100 million tons, if China does not make export, steel prices on the international market will keep rising.

   Of China's steel export in 2006, over 60 percent are plates, pipes and strips. China's export of such quality products as auto plate, medium plate, HR roll, and silicon sheet is few. This means there is a big potential for China to increase its production capacity of high-end quality steel products.

   As for whether China should export steel billet and plate, Qi holds that China should study the consumption structure of the international market, and let the "market" have the saying, instead of interfere frequently. The adjustment of export rebate policy should be "timely and moderately".

   Qi warned that to abolish and lower export rebates may boost up steel prices and the export cost, thus triggering rising of PPI and CPI, which in turn may increase the pressure of inflation.