China exported 2.2 million tonnes of scrap steel during the year, up from about 1,000 tonnes in 2016, the report said, despite a 40 percent tariff on scrap steel exports.

The bulk of the exports went to Southeast Asian countries including Indonesia, Thailand and Vietnam, the report said.

China has sought to cut capacity in its steel sector, shutting down 115 million tonnes of capacity between 2016 and 2017, and closed 140 million tonnes of induction furnaces that use scrap metal to make steel.