Chinese Removal of Export Rebate on 23 Items to Prop Steel Prices
Steel Prices SCMP

Chinese Removal of Export Rebate on 23 Items to Prop Steel Prices

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

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 ≥3mm

Other cold-rolled iron or non-alloy steel coils with a thickness of ≥3mm

>275 Newton/mm2 steel coil, 1mm<thickness<3mm

Other cold-rolled iron or non-alloy steel coils, 1mm<thickness<3mm

>275 Newton/mm2 coil, 0.5mm≤thickness≤1mm

Other cold-rolled ordinary steel coils, 0.5mm≤thickness≤1mm

Only cold rolled iron or non-alloy steel coils, thickness <0.3mm

Cold rolled iron or non-alloy steel coils only, 0.3mm≤thickness≤0.5mm

Plated or tinned ordinary steel plate with a thickness of <0.5mm

Galvanized iron or non-alloy steel flat-rolled products

Other plated or zinc-coated ordinary steel sheet

Flat-rolled products of iron or non-alloy steel plated or coated with aluminum-zinc alloy

Flat rolled products of grain-oriented silicon electrical steel, width ≥600mm

Other flat rolled products of silicon electrical steel, width ≥600mm

Cold-rolled plates of other alloy steel, width ≥600mm

Plates of other alloy steel plated or coated with zinc, width ≥600mm

Alloy steel plate plated or coated with zinc by other methods, width ≥600mm

Flat rolled products of grain-oriented silicon electrical steel, width <600mm

Other flat rolled products of silicon electrical steel, width <600mm

Rail

Other steel-made drilling oil and natural gas with a yield strength of less than 552 Mpa, Seamless casing, catheter

Other 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 gas

Other steel-made drilling petroleum and natural products with a yield strength greater than or equal to 758 Mpa, Seamless casing and pipe for gas

China 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.

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