From January to October, China's steel imports dropped by 29 percent year on year to 15.5 million tons, according to Chen Haoran, chairman of the China Chamber of Commerce of Metals, Minerals and Chemicals Imports and Exports.

It is the first time in more than two decades that the nation's steel exports have surpassed imports. Between 1981 and 2005, net imports totaled 295 million tons in China.

However, Chen said, the surge in steel exports will not last as policies to cut export tax rebates and slash production begin to take effect.

For the last ten years, China has produced more steel than any other country, reaching 352 million tons in 2005, nearly one-third of the world total, according to the National Development and Reform Commission.