China has announced the removal of VAT rebates on exports of 23 steel products from August 1, to take the total no items without VAT rebate to 164. The latest announcement covers steel products including carbon and alloy steel cold-rolled coils, galvanized, galvalum, coated sheets, tinplates, electrical steel, steel rail, and seamless pipes for the oil and gas industry. The adjustments came as China wants to ensure domestic supplies when curtailing production for fewer carbon emissions. All major steel products have no duty rebate now but the issue of imposition of 15-25% export tax on key steel products remain undecided.23 Items>355 Newton/mm2 cold-rolled steel coil, thickness ≥3mmOther cold-rolled iron or non-alloy steel coils with a thickness of ≥3mm>275 Newton/mm2 steel coil, 1mm<thickness<3mmOther cold-rolled iron or non-alloy steel coils, 1mm＜thickness＜3mm>275 Newton/mm2 coil, 0.5mm≤thickness≤1mmOther cold-rolled ordinary steel coils, 0.5mm≤thickness≤1mmOnly cold rolled iron or non-alloy steel coils, thickness <0.3mmCold rolled iron or non-alloy steel coils only, 0.3mm≤thickness≤0.5mmPlated or tinned ordinary steel plate with a thickness of <0.5mmGalvanized iron or non-alloy steel flat-rolled productsOther plated or zinc-coated ordinary steel sheetFlat-rolled products of iron or non-alloy steel plated or coated with aluminum-zinc alloyFlat rolled products of grain-oriented silicon electrical steel, width ≥600mmOther flat rolled products of silicon electrical steel, width ≥600mmCold-rolled plates of other alloy steel, width ≥600mmPlates of other alloy steel plated or coated with zinc, width ≥600mmAlloy steel plate plated or coated with zinc by other methods, width ≥600mmFlat rolled products of grain-oriented silicon electrical steel, width <600mmOther flat rolled products of silicon electrical steel, width <600mmRailOther steel-made drilling oil and natural gas with a yield strength of less than 552 Mpa, Seamless casing, catheterOther steel products with a yield strength greater than or equal to 552 MPa but less than 758 Mpa, Seamless casing and pipe for drilling oil and natural gasOther steel-made drilling petroleum and natural products with a yield strength greater than or equal to 758 Mpa, Seamless casing and pipe for gasChina had earlier cut VAT export rebate on 146 items from 1 May 2020 and had raised the export duty on high silicon steel, ferrochrome and foundry pig iron to 25%, 20% and 15% respectively, from 20%, 15% and 10%, effective May 1.Steel import prices in various regions could see uplift as Chinese export volumes are expected to be limited due to the rebate cancellation. A 15%, or minimum of USD 115 per tonne, export duty will apply from August on Russian steel exports as well, which will change international trade flows further.
China has announced the removal of VAT rebates on exports of 23 steel products from August 1, to take the total no items without VAT rebate to 164. The latest announcement covers steel products including carbon and alloy steel cold-rolled coils, galvanized, galvalum, coated sheets, tinplates, electrical steel, steel rail, and seamless pipes for the oil and gas industry. The adjustments came as China wants to ensure domestic supplies when curtailing production for fewer carbon emissions. All major steel products have no duty rebate now but the issue of imposition of 15-25% export tax on key steel products remain undecided.23 Items>355 Newton/mm2 cold-rolled steel coil, thickness ≥3mmOther cold-rolled iron or non-alloy steel coils with a thickness of ≥3mm>275 Newton/mm2 steel coil, 1mm<thickness<3mmOther cold-rolled iron or non-alloy steel coils, 1mm＜thickness＜3mm>275 Newton/mm2 coil, 0.5mm≤thickness≤1mmOther cold-rolled ordinary steel coils, 0.5mm≤thickness≤1mmOnly cold rolled iron or non-alloy steel coils, thickness <0.3mmCold rolled iron or non-alloy steel coils only, 0.3mm≤thickness≤0.5mmPlated or tinned ordinary steel plate with a thickness of <0.5mmGalvanized iron or non-alloy steel flat-rolled productsOther plated or zinc-coated ordinary steel sheetFlat-rolled products of iron or non-alloy steel plated or coated with aluminum-zinc alloyFlat rolled products of grain-oriented silicon electrical steel, width ≥600mmOther flat rolled products of silicon electrical steel, width ≥600mmCold-rolled plates of other alloy steel, width ≥600mmPlates of other alloy steel plated or coated with zinc, width ≥600mmAlloy steel plate plated or coated with zinc by other methods, width ≥600mmFlat rolled products of grain-oriented silicon electrical steel, width <600mmOther flat rolled products of silicon electrical steel, width <600mmRailOther steel-made drilling oil and natural gas with a yield strength of less than 552 Mpa, Seamless casing, catheterOther steel products with a yield strength greater than or equal to 552 MPa but less than 758 Mpa, Seamless casing and pipe for drilling oil and natural gasOther steel-made drilling petroleum and natural products with a yield strength greater than or equal to 758 Mpa, Seamless casing and pipe for gasChina had earlier cut VAT export rebate on 146 items from 1 May 2020 and had raised the export duty on high silicon steel, ferrochrome and foundry pig iron to 25%, 20% and 15% respectively, from 20%, 15% and 10%, effective May 1.Steel import prices in various regions could see uplift as Chinese export volumes are expected to be limited due to the rebate cancellation. A 15%, or minimum of USD 115 per tonne, export duty will apply from August on Russian steel exports as well, which will change international trade flows further.
