According to Mr Luo Bingsheng executive vice president of CISA, in order to stabilize China’s international export markets share, relative department should improve steel export environment bring out moderate flexible steel export tax policy, adjust export rebate in one step, further realize fair tax, regulate import and export trade order and strengthen the control of import and antidumping so as to sustain the domestic market.

Mr Luo unveiled that CISA has submitted its suggestions to related departments who are just doing research on it.

Further more, it is a trend for the price dive of imported iron ore. Chinese steelmakers are negotiating with iron ore suppliers, aiming at cutting the price to the level of 2007. Analysts consider that target coincides with steelmakers’ request of 40% decrease of the contract price for 2009 to 2010. However, China is facing with great pressure as some Asian countries have already set newly annual price with Australian ire ore supplier.

Mr Luo forecasted the global iron ore market will bear severe oversupply this year and the imports of Japan and South Korea are likely to tumble. Among others Japan may witness a drop of 30% where Albeit China is the only country to import to a large amount.

The present spot price is evidently cheap than long term contract price and Australian supplier’s offer. If China accept Japan’s contract price, it must lead Chinese steel industry into great loss.