In efforts aiming to determine China's new export policy as well as the stance to be taken against the European Union's potential antidumping investigation, the China Iron and Steel Association (CISA) held a meeting on November 9, 2007.
The main topic discussed at the meeting was the introduction of steel export qualification criteria. According to the CISA's suggestions, mills with over one million mt of steel production and a minimum of 20,000 mt of steel exports in 2007 should be deemed eligible to export steel. Meanwhile, trading companies with a minimum of 30,000 mt of steel exports in 2007 should also continue exporting steel in 2008, so long as they have the consent of the producer to carry out exports.
The second issue on the meeting's agenda was Eurofer's antidumping complaint to the EU concerning imports of Chinese steel products. If the EU decides in favor of an antidumping investigation, the relevant mills will have to reply. Anshan Steel, Ferrochina, Handan Steel, Benxi Steel and WISCO were the largest Chinese steel exporters to Europe in the period from October 01, 2006 to September 20, 2007. Therefore, if the EU decides to initiate an antidumping investigation, these are the mills that will have to reply. Most of them have informed the CISA that if required they will answer the case made against them.
The CISA also informed participants at the meeting that a scheme for new export tariff rates has been prepared and submitted for the approval of the State Council. It is rumored that, according to the scheme, the five percent VAT rebate paid for cold rolled coil and hot dip galvanized coil will be reduced to zero. Meanwhile, the export tariff for hot rolled coils and plates may increase from the current five percent to 10 percent, that for long products may increase from 10 percent to 25 percent and that for semi-finished products may increase from 15 percent to 30 percent. The announcement date of these changes has not yet been determined; however, it is reported that they are to be effective from January 1, 2008.