CISA: China Tax Move May Shift Focus To Domestic Steel Demand

SHAH ALAM, Malaysia, June 24 -- China's move to scrap export tax rebates for key commodities, including some steel products, may position domestic demand as the key driver for growth in its steel sector, China Iron and Steel Association's Deputy Secretary-General said Wednesday.

"China is a huge market. The attention should shift to the development of our own market" for steel, Yang Zunqing said on the sidelines of an industry conference. "There's plenty of infrastructure building required at the disaster-stricken areas (in southern China), which will consume more steel."

Yang said China's steel exports "could be affected" after the country's central bank pledged to allow more flexible movement in the yuan, but declined to elaborate further.