A record 7.68 million tons of rolled steel was exported in August up 6-and-a-half percent from July, and also a 43 percent rise from a year earlier.

Industry observers say the main reason for the spike is a widening price gap, between markets at home and overseas.

Figures in August are sparking concerns that authorities might want to go ahead with a proposal to scrap tax rebates on exports. This has been kept on hold for a while to aid the sector.

However, most analysts believe that tax rebates will continue especially given the pressure steel-makers already face from recent price-falls on the domestic market.

(CCTV September 15, 2008)