On June 22, Chinese government has announced its decision to remove the export rebates for certain steel products. The determination will be in force from July 15, 2010.
The export tax rebate change is mainly in HR and profile steel, removing the 9 percent rebate on them. Also for CR, HDG and PPGI strips, with width less than 600mm, the export tax rebate level is now zero.
The rebate rates for CR, HDG and PPGI (width > 600mm) are unchanged remaining at 13 percent. It is also reported that rebates for boron added products remain unchanged.
As SteelOrbis previously reported, Yao Jian, spokesman of China's Ministry of Commerce (MOC) announced in mid-June that the export rebate on steel products was expected to be lowered to take exports and production levels under control with the aim of achieving energy saving and emission reduction targets, especially as 2010 is the last year of China's eleventh five-year plan.
After China's central bank announced over the weekend that it will allow the RMB to gradually strengthen against the US dollar, the rebate decision will further worsen conditions for Chinese exporters.