China to cancel export rebate on April 1, 2005

China to cancel export rebate on April 1, 2005

SteelOrbis learned from various sources that the Chinese government will cancel the 13% tax rebate on billet/slab exports and apply a 10% export rebate to long products as of April 1, 2005. The move goes in line with China's overall measures to curb the expansion of steel products whose manufacture consumes larges amounts of energy and causes high levels of pollution. In addition, the plan follows the country’s policy of protecting its domestic raw materials. China has reduced or even canceled export rebates on strategic resources recently in order to prevent exploitation of the country’s rare natural resources. In the fourth quarter of 2004, China canceled export rebates on copper, aluminum and nickel. On January 1, 2005, the 8% export rebate on electro-aluminum and ferroalloy was also canceled. Meanwhile, export taxes have been levied on various other products.