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China has decided to reduce export rebates for primary products after exports exploded in the first quarter, said an official with the National Development and Reform Commission (NDRC) on Thursday.

 

In the first quarter, China's exports of steel products soared 120 percent to 14.13 million tons while steel billets rocketed by 98 percent to reach 1.78 million tons.

 

The country's coke exports rose 20 percent to 3.65 million tons and its ferroalloy exports surged 70 percent to 750,000 tons.

 

"Strong demand and rising prices on the international market led these sectors to expand production and exports", said Jia Yinsong, an official with NDRC, adding that this had led to a spike in energy consumption.

 

"High levels of production and export of primary products translates into too much consumption of natural resources, which in turn means serious pollution in China", said Jia.

 

"The situation cannot be allowed to persist. Export rebate rates will be lowered to rein in the trend", he said.

 

(Xinhua News Agency April 27, 2007)