Beijing may impose further restrictions on steel exports

Beijing may impose further restrictions on steel exports

In response to international political pressure, Beijing will likely impose further restrictions on steel exports in an effort to reduce steel export volume. In line with the statement from the National Development and Reform Commission (NDRC), the Beijing government may reduce the steel export volume of the country by imposing an export duty on steel slabs or by reducing the tax rebate on export of other steel products. As previously reported by SteelOrbis, the Beijing government cancelled the 13 percent tax rebate on billet/slab exports as of April 1, 2005, and reduced the 13 percent tax rebate on exports of finished steel products to 11 percent as of May 1, 2005. The latest statistics indicate that a China's total steel export volume for the first eight months of the year has increased 97.24 percent year on year. The reduction in tax rebates has an effect on the exports; however, the US, Japan and the European Union (EU) still consider China's export volume to be high. All three import Chinese steel products in huge volumes, therefore they are concerned about the dumping of Chinese products in their markets. Since the three parties warned that antidumping investigations could be initiated for Chinese steel products, Beijing felt the need to review its steel export policy. Sources report that a change in the policy may be in the form of an export duty or a reduction in export tax rebates.