Steel firms warned of tough H2

China's steel sector can expect to face increasing international trade friction as inventories and output continue to rise amid weakening demand driven by the economic slowdown, according to Wang Liqun, vice-chairman of China Iron and Steel Association.

Wang told an industrial conference that overcapacity will remain in the second half of the year, and companies should not expect exports to rise to counter the situation.

Earlier this week, the ASEAN Iron and Steel Council urged the Chinese government to remove export tax rebates for steel leaving the country for ASEAN-member nations, saying that Chinese-made products are some 3-5 percent cheaper than in some regional markets.