China may reduce export tax rebate on finished steel products

China may reduce export tax rebate on finished steel products

Chinese Ministry of Finance (MOF) officials announced that Chinese government is planning to reduce export tax rebate on finished steel products from 13% to 11% as of May 1, 2005. The proposal is reported to be submitted to the State Council for final approval. The move follows the cancellation of 13% export tax rebate on billets/slabs on April 1, 2005. The move, which aims at increasing availability of finished steel products in local Chinese market, may have a soothing effect on the market, especially at a time when shipbuilding, automakers and home appliance sectors depend mostly upon imports.