The adjustment in tax rebate on steel exports is not likely to affect Chinese mills as the change is smaller than expected, and higher global prices will also sustain the outbound trade, analysts say.

The Chinese government will probably slash export tax rebates for most steel products to 8 to 9 percent from the current 11 percent starting next month, Xinhua news agency reported yesterday.

Premier Wen Jiabao will preside a meeting to decide on the policy adjustment tomorrow, said Jia Liangqun, an analyst with industry portal Mysteel.com.

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