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China, producer of one third of the world's steel, may increase output of the metal by 14 percent this year, the China Iron and Steel Association said.

Production may reach 480 million tons this year, the association said in a statement in Beijing. That compares with its previous forecast of 475 million tons.

Steel consumption may rise 12 percent to 446 million tons this year, the statement said. Steel exports may rise 20 percent to 51.6 million tons while second-half exports may tumble by as much as 50 percent from the first six months, it said.