SHANGHAI, Feb. 13 (SMM) – Outbound shipments of China’s steel exports totaled 10.29 million tonnes in January, a new record high, according to China Customs. 

The exports, up 1.2% from 2014’s December and 52% year-on-year, surprised the market, as the removal of export rebate on boron-added steel products, effective Jan. 1, 2015, is believed to negatively affect the country’s steel exports in the short term. 

Large shipments before new export policy, little profitability in domestic sales and stock replenishment demand overseas after the Christmas and New Year holidays are major drivers behind the rise in exports, SMM understands.  

China’s steel exports are expected to fall in February, SMM foresees, saying falling export orders at steel mills after the new export policy as the main reason.  

The decline in export price competition following post-holiday stockpiling will also reduce the attractiveness of domestic steel products in overseas market.