China lowers steel exports in February to lowest level in 6 months

China exported 7.8 million tonnes of steel products in February 2015, according to data released by the customs administration, indicating a 24 percent decline in exports from 10.29 million tonnes in January 2015, as the tax change policies led to a slowdown in sales.

The decline in steel exports came after shipments from China jumped to record numbers last year amid weak domestic demand. The Chinese government lifted export tax breaks for alloys containing boron as of January 1 as part of its measures to reduce industry oversupply.

According to CLSA Limited, China shipped 93,780,000 tons of steel products in 2014 amid the country's slowest economic growth rate since 1990. At the same time, the share of exports of alloyed steel with the addition of boron accounted for more than 30 percent of these supplies. Steel consumption in China declined 3.4 percent to 738.3 million tonnes last year

However, exports in February were up more than 48 percent from a year earlier, the customs administration in Beijing said. Imports of steel products fell 20 percent, resulting in a trade surplus of $ 60.6 billion.

Exports to the US in the first two months jumped 21 percent in yuan terms. Shipments to Southeast Asian countries also increased in January and February 2015, up 38 percent. The recovery in the United States is supporting the Chinese economy, which is seeking to reduce excess capacity and focus on meeting domestic demand.