Market discusses export tax rebate cut in China, could be bigger than expected

Wednesday, 31 March 2021 17:30:44 (GMT+3)   |   Shanghai
       

Market sources have told SteelOrbis that on April 1 China’s Ministry of Finance and State Administration of Taxation will jointly issue the Announcement on Adjusting the Export Tax Rebate of Relevant Products, which will be effective as of April 10, subject to the completion of the export tax rebate for some products.

In particular, there are 60 tariff codes related to steel products. After the adjustment, the export tax rebate for primary steel products - including HRC, pickling coils, steel plate and rebar - will decrease from 13 percent to zero, while the rebate for CRC and HDG is expected to decline to four percent, according to market sources’ expectations.

From the information discussed in the market, the adjustment measures will be stricter compared to the submission made by the China Iron and Steel Association (CISA) to the relevant government departments, signaling the government’s determination and confidence in cutting back steel capacity and achieving carbon neutrality goals. Earlier this month, market sources had been speculating that the export tax rebate cut for the main steel products would be from 13 percent to just 9 percent.


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