China may cancel the 5 percent export tax rebate on alloy steel upon the export surge, a source disclosed.

    The export rebate on alloy steel is likely to be cancelled in the second half of August and the new policy may take effect as of September 1, which will cut China's steel export by some 500,000 tons, according to the source.

    Customs statistics show that China exported 7.21 million tons of steel bars in July, a record high of monthly export, up 21 percent year on year.

    Export of steel billets totaled 230,000 tons in July, exceeding the accumulated export in the first five months.

    The rebound of steel bar and billet export aroused relevant authorities' concerns about the existing tariff policy.

    But insiders noted that China would not adopt a unified tax standard on steel export despite export surge.

    The possibility is to cancel the 5 percent tax rebate to export of alloy steel, or to cancel the tax rebate for several alloy steelproducts.

    Relevant policies are expected to be dished out in the second half of August and take effect as of September 1, market analysts deemed.