China may reduce pipe tax rebates soon

SteelOrbis has been informed by sources in the market that the VAT rebate rates paid by the Chinese government for pipe exports may be reduced soon. According to the rumors, the VAT rebate for welded pipe exports will be reduced from 13 percent to zero, while that for seamless pipes will be reduced from 13 percent to five percent. Although there have not been any official announcements yet, market players predict the probable enforcement date as July 1, 2007. In addition to these rumors, on the other side of the world, an anti-dumping petition has been presented by pipemakers in the US asking the government to bring certain measures against Chinese exports. Under these circumstances, to what extent the Chinese tax rebate cancellation will be influential, still remains to be seen.