CHINA’S steel exports fell in 2016 from a record in the previous year, dragged down by improved demand at home and the government’s resolve to tackle overcapacity, in a relief for steelmakers elsewhere that have been hit by “cheap Chinese shipments.”

    China’s exports could slip further this year, analysts and industry officials say, as the Chinese Government strengthens its supply-side reforms.

    China’s exports of steel products fell 3.9 percent from the previous month to 7.8 million tons in December, customs data showed Friday. Full-year export volumes dropped to 108.46 million tons from a record 112.4 million tons in 2015, Reuters calculations showed.

    “It’s a relief for steel producers globally, especially in countries of the Association of Southeast Asian Nations,” said Roberto Cola, vice president of the ASEAN Iron and Steel Council.

    Trade cases filed by countries from Asia to Europe against Chinese steel products as well as improved domestic demand may have helped limit China’s exports this year, said Cola.

    “But I think the big factor was the shutdown of many steel plants due to China’s anti-pollution measures which had curbed volume for export,” he said.

    China shut at least 45 million tons of steel production capacity last year, meeting its target, in a drive to address a glut through 2020. China last week unleashed its boldest reform plan so far for its bloated steel sector, saying it will eliminate all production of low-quality steel products by the end of June, a move analysts say could dent exports further.

    (SD-Agencies)