China Ministry of Finance and State Administration of Taxation issued an announcement on canceling the export tax rebate for 146 steel products
According to the news of the Ministry of Finance of the People’s Republic of China on April 28th, the Ministry of Finance and the State Administration of Taxation of the People’s Republic of China issued an announcement on canceling the export tax rebate for some steel products.
Announcement on Cancelling Export Tax Rebate of Some Steel Products
Announcement of the Ministry of Finance and the State Administration of Taxation No.16, 2021
The relevant matters concerning the cancellation of export tax rebates for some steel products are hereby announced as follows:
From May 1, 2021, the export tax rebate for some steel products will be cancelled. See the annex for the specific product list. The specific execution time shall be defined by the export date indicated on the declaration form of export goods.
It is hereby announced.
Attachment: List of Steel Products with Export Tax Rebate Cancelled
Ministry of Finance and General Administration of Taxation
April 26, 2021
Attachment download:
List of steel products with export tax rebate cancelled. xls
Release date: April 28, 2021
Cold-rolled steel plates, hot-dip galvanized steel plates and narrow-band steel are also on the list of products to cancel rebate.
In another statement, the Ministry of Railways also reduced the import tax on pig iron, crude steel and recycled steel to zero from May. Recycled steel refers to scrap iron in overseas markets.
When the measures to curb steel exports and relax imports of steel raw materials were introduced, China’s crude steel output in April reached the second highest level in history, although steel centers such as Tangshan and Handan in Hebei Province had ordered production cuts and the price of seaborne iron ore reached a record high.
The Ministry said: “These measures will reduce import costs, expand imports of steel resources, and bring downward pressure on domestic crude steel output, guide the steel industry to develop in the direction of reducing overall energy consumption, and promote the transformation and high-quality development of the steel industry.”
In 2020, China exported 53.67 million tons of steel, among which HRC and wire rod accounted for some of the largest steel grades. Discounts on cold-rolled coils and hot-dip galvanized coils have not been cancelled, probably because they are considered to be products with higher added value, although market participants indicated that they may be reduced in subsequent announcements.
Implement a zero import provisional tax rate for pig iron, crude steel, recycled steel raw materials, ferrochrome and other products; The export tariffs of ferrosilicon, ferrochrome and high-purity pig iron should be appropriately increased, and the export tax rates of 25%, 20% and 15% should be implemented respectively after adjustment.
The above adjustment measures are conducive to reducing the import cost, expanding the import of steel resources, supporting the domestic reduction of crude steel output, guiding the steel industry to reduce the total energy consumption, and promoting the transformation, upgrading and high-quality development of the steel industry.
Recently, the price increase of bulk commodities has aroused great concern from the central government. Many important meetings sent clear signals to strengthen market regulation of raw materials. The Ministry of Industry and Information Technology clearly stated that it is necessary to crack down on market monopoly and malicious speculation, strengthen price monitoring, and guard against panic buying or stocking.
The global economy has recovered steadily, and some of them have short-term supply shortage. In addition, the commodity prices continue to rise this year.
Recently, the market of basic metals such as iron ore, copper and aluminum is improving. According to the latest data on April 27th, the price of Platts’ 62% iron ore reached 193.85 USD/ton, which continued to refresh this year’s price record and hit a ten-year high.
In addition to the impact of international commodity prices, with the promotion of China’s carbon peak and carbon neutralization target, China’s crude steel output will definitely be compressed this year, which also promotes the expectation of steel product price increase to a certain extent.
Since the beginning of this year, on the whole, the price of rebar in China has been rising. On April 27th, the settlement price of rebar in Shanghai Futures Exchange reached 5,396 yuan/ton, the highest since 2009.
How to strengthen the regulation of raw material market? China’s National Customs Tariff Commission adjusts through tariffs and reduces import tariffs, which is conducive to reducing import costs; Appropriate increase in export tariffs will help support domestic crude steel production reduction and guide the steel industry to reduce the total energy consumption.
