NEWSBREAK: China to cancel some steel export tax rebates from May 1
China will remove the export tax rebate for some steel products from May 1, the Ministry of Finance said on Wednesday April 28.
Steel products with HS codes 7205-7307 will be affected, which includes hot-rolled coil, rebar, wire rod, hot rolled and cold-rolled sheet, plate, H beams and stainless steel, the ministry said.
Market chatter about the cancellation of steel export rebate rates have been present in the market since January and February this year, with the uncertainty creating turmoil in the steel markets since.
The policy covers almost all steel products, except cold-rolled coil, hot-dipped galvanized coil and aluminum-zinc coated coil.
Although these products are excluded from the policy, market sources told Fastmarkets they believe the export rebate rate will be cut to 4% or 9% from the current 13%.
On the same day, the ministry announced a policy on adjusting export and import taxes of ferrous raw materials, which aims to reduce import costs and increase imports of steel making raw materials.
Market participants think there could be another policy on reducing steel exports following the current policy on the cancellation of steel rebate rates.
For stainless steel products, the export rebate rates for stainless HRC, stainless HR sheets and stainless CR sheets will also be canceled from May 1.
The current rebate on these stainless steel products is at 13%.