China’s Ministry of Finance said on Thursday it has decided to cancel export tax rebates for more steel products from 1 August. These products escaped the last raft of tax rebate cancellations in April, which were meant to encourage the export of high-end products.
According to the announcement, 13% export tax rebates for 23 steel products will be cancelled starting 1 August, Kallanish reports. These products are mainly cold rolled coil, galvanised steel, silicon electric steel, rail and seamless pipe used for natural gas and drilling for oil.
They come under HS codes 7209.15.10, 7209.15.90, 7209.16.10, 7209.16.90, 7209.17.10, 7209.17.90, 7209.18.10, 7209.18.90, 7210.12.00, 7210.30.00, 7210.49.00, 7210.61.00, 7225.11.00, 7225.19.00, 7225.50.00, 7225.91.00, 7225.92.00, 7226.11.00, 7226.19.00, 7302.10.00, 7304.29.10, 7304.29.20, and 7304.29.30.
Last year, China exported 13.58 million tonnes of these products to overseas markets, down 15.53% year-on-year, according to customs data. Due to the recovery of overseas demand in the six months through June this year, total exports came to 10.53mt, up 42.8% y-o-y. This also exceeded the level of the same period in 2019.
In a separate document, the ministry announced an increase in export taxes on high-purity pig iron and ferrochrome. These will now be set at 20% and 40% respectively. The HS code for pig iron covered by the tax change is 7201.10.00, while ferrochrome comes under HS codes 7202.41.00 and 7202.49.00.
There is still no announcement about the rumoured export tax on hot rolled coil, however. Traders estimate this could be announced one month later and take effect from 1 September. “We don’t think China will abandon it, but September could be the possible timeline for the change,” a source opines.
By Kallanish Team
