October 11, 2008

Panzhihua Steel aiming for record steel exports

It is reported that Chinese steel maker Panzhihua Steel has put away previous export strategy focusing on primary products and would now optimizes export product mix for getting better returns.

Panzhihua Steel has now laid emphasis on exports of high tech and high value-added products such as steel rail, flat products and seamless steel pipe and reduced exports of high polluting, high energy consuming and resource intensive products in line with government requirements. Export volumes of steel rail, flat products and seamless steel pipe all broke 100,000 tons during the first seven month.

Panzhihua Steel earned USD 324.44 million through exports during January to July 2007 setting a new record. Its export volume of steel rail remained the largest in China.

In January to June 2007 Chinese government levied a 5% to 10% export tax on a total of 83 types of steel products on June 1st 2007, followed by the cancellation of export tax rebate on the 83 types of steel product on April 15th 2007. In addition, the export tax on steel billet, steel ingot and pig iron was increased from 10% to 15% on June 1st 2007. These policies, as well as the continuous appreciation of CNY have curbed the exports of steel products.

(Sourced from MySteel.net)