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China to cancel export tax on finished steel products as of January 1

China will remove the export tax on finished steel products including rebar and wire rod as of January 1, 2018, as announced by the Ministry of Finance (MOF) on December 15. The MOF stated that this move is based on “the changes in industrial development and export conditions”.

According to the new tariffs, as of January 1, the export duty rate for billets and slab will be reduced to 10 percent from 15 percent, while the export duty rate for stainless hot rolled coil (HRC) will be reduced to five percent from 10 percent.

As recently reported by SteelOrbis, the China Iron and Steel Association (CISA) has announced that as of the end of October this year the composite steel price index (CSPI) for the Chinese domestic market was at 115.96 points, up 2.14 points or 1.88 percent month on month, while increasing by 35.61 points or 44.32 percent on year-on-year basis, indicating the upward movement of Chinese finished steel prices. Meanwhile, according to data issued by the Chinese customs authorities, China’s finished steel export volume in the January-November period of the current year totaled 69.83 million mt, showing a significant drop of 30.7 percent year on year.

The increases in Chinese steel prices and drop in Chinese steel exports reflect the loss of competitiveness of Chinese steel products in the international market, while removing the export tax should make it easier for Chinese steel mills to sell their products overseas. In 2017, China’s export tax on many steel products has been at 15 percent, with the export tax on high-value steels including stainless steel, special steel, and steel alloys at 10 percent.

New export rates for 2018 can be seen in the following table:

Sequence number Duty paragraph Trade name Reference export tax rate in 2018 (%) *Temporary tax rate in 2018 (%)
90 72011000 Non-alloy pig iron, phosphorus content <= 0.5% 20
91 72011000 High-purity pig iron (Mn content < 0.08%, phosphorus content < 0.03%,S content < 0.02%,and Ti content < 0.03%) 20 10
92 72012000 Non-alloy pig iron, phosphorus content > 0.5% 20
93 72015000 Alloy pig iron 20
94 72021100 Ferromanganese (Carbon content > 2%) 20  
95 72021900 Ferromanganese (Carbon content <= 2%) 20  
96 72022100 Ferrosilicon (Silicon content > 55%) 25 20
97 72022900 Ferrosilicon (Silicon content <= 55%) 25 20
98 72023000 Ferrosiliconmanganese 20  
99 72024100 Ferrochrome (Carbon content > 4%) 40 15
100 72024900 Ferrochrome (Carbon content <= 4%) 40 15
101 72025000 Ferrochrome silicon   10
102 72029100  Ferrotitanium and Ferrotitanium silicon   10
103 72029290 Other vanadium iron   10
104 72029300 Ferroniobium   10
105 72031000 Ferrous products obtained by direct reduction of iron ore   10
106 72039000 Other spongy ferrous products (Purity > 99.94%)   10
107 72041000 Cast iron scrap 40  
108 72042100 Stainless steel scrap 40  
109 72042900 Other alloy steel scrap 40  
110 72043000 Tin steel scrap 40  
111 72044100 Metal waste and scrap from mechanical processing 40  
112 72044900 Other scrap 40  
113 72045000 Scrap iron for remelting 40  
114 72061000 Iron and non-alloy steel ingot   10
115 72069000 Other iron and non-alloy steel in primary forms   10
116 72071100 Rectangular section semi-finished steel, width < 2 mm thickness, carbon content < 0.25%   10
117 72071200 Other rectangular section semi-finished steel, carbon content < 0.25%   10
118 72071900 Other semi-finished steel with carbon content < 0.25%   10
119 72072000 Semi-finished steel with carbon content >= 0.25%   10
120 72072000 Cast semi-finished steel for wheels   5
121 72181000 Stainless steel ingots and other primary products   5
122 72189100 Rectangular section stainless semi-finished steel   5
123 72189900 Other stainless semi-finished steel   5
124 72191312 Chromium manganese stainless steel coils, 3 mm<=thickness < 4.75 mm, without pickling, Mn >= 5.5%   5
125 72191322

 

Chromium manganese stainless steel coils, 3 mm <= thickness < 4.75 mm, with pickling, Mn >= 5.5%   5
126 72191412 Chromium manganese stainless steel coils, thickness < 3 mm, without pickling, Mn >= 5.5%   5
127 72191422 Chromium manganese stainless steel coils, thickness < 3 mm, with pickling, Mn >= 5.5%   5
128 72241000 Alloy steel ingots and other primary shape alloy steel   5
129 72249010 Rough cast forging semi-finished steel, single weight >= 10 mt   5
130 72249090 Other alloy semi-finished steel, excluding alloy round semi-finished steel whose diameter >= 700 mm   5

(*In 2018, the temporary rates will be implemented, while the reference rates, where given, will be implemented if the temporary rates are cancelled, unless a special announcement is made.)

*This was published on SteelOrbis website on December 18, 2017.


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