(Adds comments, writes through)

By Niu Shuping

BEIJING, May 21 (Reuters) - China will impose or increase taxes on a range of metal exports in an effort to control exports by energy-intensive industries and ease its huge trade surplus, the Ministry of Finance said on Monday.

The announcement came ahead of a "strategic economic dialogue" in Washington this week between high-level U.S. and Chinese officials at which China's huge trade surplus is likely to be a major bone of contention.

The change will "further control exports of energy-and-resource-intensive products which cause high pollution, to promote the balance of trade," the ministry said in a statement on its Website, www.mof.gov.cn.

China would impose a tax of between 5 and 10 percent on exports of more than 80 types of steel products, it said.

China's soaring steel exports in particular had raised tensions with the United States and Europe, and higher taxes on steel exports had been expected.

This week, China began a licensing system for exports of 83 types of steel products in a move also expected to curb the export surge.

"China's steel exports should be lower in the second half than in the first half," said Qi Xiangdong, vice-secretary general of the China Iron and Steel Association.

"Steel exports in 2007 will be around the same level as last year, considering the huge export volume in April," he said. Mills and traders racing to beat export policy changes shipped a a record 7.16 million tonnes of steel products last month.

"What I worry is that such strong and continuous measures by the government will hit many steel mills hard. Many will lose money, some could close and unemployment problems could arise," said Li Xinchuang, vice-president of the China Metallurgical Industry and Research Institute.

Exports would not slow down much this year since most contracts had been signed already, but next year could see a big fall-off, Li predicted.

The changes take effect on June 1. The short statement did not give a precise breakdown of which metals were included in the change, but a detailed list is normally issued after such announcements.

METALS

The export tax for metals including unwrought zinc will rise to 10 percent from 5 percent, while a 10 percent tax will be added to exports of refined lead.

That could lift zinc <MZN3> and lead <MPB3> futures on the London Metal Exchange, both of which have been underpinned by forecasts of a global deficit in 2007 as Chinese consumption rises.

The statement did not mention aluminium products, which currently enjoy a rebate of 8 to 11 percent, but many traders expect that to be removed sometime this year. Exports have doubled in the first four months of this year, but the aluminium industry has argued that products production is not a polluting process.

The export tax on steel billet and pig iron will rise to 15 percent from the current 10 percent, in line with market talk last week.

"The tax move is within the market's expectation," said analyst Luo Wei at China International Capital Corp.

"China saw larger-than-expected steel exports in April due to strong overseas demand. I think the tax move can efficiently lower exports in the months to come."

Some ferro-alloy exports will be taxed at 15 percent, up from the current 5 to 10 percent, again in line with government warnings of overheated investment in that sector.

Below is a table of taxes announced by the Finance Ministry on Monday. A detailed breakdown is expected later:

NEW TAX (PCT) PREVIOUS TAX (PCT)

unwrought zinc 10 5

refined lead 10 0

steel products 5-10 0

steel billet 15 10

pig iron 15 10

ferro-alloys 15 5-10

rare earths 10 0

some metal scrap 10 0 ores (inc. nickel, chromium, tungsten, rare earths)

15 10

(Additional reporting by Lucy Hornby in Beijing and Alfred Cang in Shanghai)

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