The Finance Ministry announced an export tax of as much as 15% on
steel slabs and 10% on steel wire and rods to reduce exports of
"energy consuming, polluting and resource-intensive products," Bloomberg reported. However, the Ministry does not expect the tax to curb overproduction. Research shows China will add
another 70 million tons this year, bringing total steelmaking capacity to 591
million tons. More is being built as Baosteel, China’s
biggest steelmaker, in conjunction with Handan Iron & Steel Group, plans a
US$2.4 billion plant in Hebei
province. China now has more steel mills than the US, Japan and Russia combined. Steel ambitions
date back to the 1950s, when backyard mills were part of Mao Zedong's
"Great Leap Forward."
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