China keeps rebar export tax unchanged, rebate policy still uncertain
China’s Ministry of Finance issued its customs duties implementation plan for 2015 on December 17, with the duties in question to become effective as of January 1, 2015.
Accordingly, China’s export tariffs for pig iron, semi-finished steel, and rebar and wire rod will remain unchanged in 2015, at 25 percent, 25 percent, and 15 percent, respectively. Rumors had recently been circulating in the market that China might cancel export tariffs for certain finished steel products and also remove its export tax rebate for alloy finished steel.
However, no statement has been made in relation to the export tax rebate, with an announcement expected to be issued within one or two weeks. Steelmakers and traders in China have stated that they hope the rebate policy will be issued as soon as possible as at present they are mostly maintaining a wait-and-see stance and have suspended their export offers due to the uncertain expectations for the tax rebate.
Meanwhile, sources tell SteelOrbis that at a meeting of the China Iron and Steel Association (CISA) held on December 17 there were strong indications that China’s export tax rebate would be terminated.