CSC to buy steel from Ukraine and Brazil

CSC to buy steel from Ukraine and Brazil

Beijing's cancellation of the export tax rebate on various semi finished steel products has prompted Taiwanese steel producer China Steel Corp to turn to Ukraine and Brazil as alternative suppliers. China's abolishment of the 13% export tax rebate on billets caused a spike in shipment costs from the world's largest steel consumer. CSC had been acquiring steel billets and slabs from Chinese steel producers Anshan Iron and Steel Corp and Shagang Group. However, steel supply from these producers has been limited following the rebate cancellation on April 1, 2005. Steel shipments from Ukraine and Brazil have become cheaper in light of the move, encouraging many producers to shift their focus to products from those two countries.