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China removes steel export tax rebate to decline steel exports

iconJan 7, 2015 10:43
Source:SMM
The country had put an end to the tax rebate on steel on the 1st of January, which contains amounts of boron, stated the ministry of Finance.

Author: Paul Ploumis
06 Jan 2015 Last updated at 09:01:06 GMT
BEIJING (Scrap Monster): The country had put an end to the tax rebate on steel on the 1st of January, which contains amounts of boron, stated the ministry of Finance. The foreign steel sales of the country would decline by about 20 to 30 percent by the end next three months when compared to the previous three months. Ma Kai, the analyst at the China International Capital Corp, forecasted that, the exports of steel from China will decline by 25 percent.

The steel exporters based in China, had been adding vast amount of boron in the metal in order to receive the tax rebate,which would be sometimes become high up to 13 percent, when th3e steel products are sold overseas.this year the Chinese economy has been slowing, and it is noted that the economic growth in the country has been the slowest in the last two decades, and this had affected the exports and also the global trade.

Eurofer, the European Union Steel Industry group, stated that,it is planning to ask EU, to impose taxes on the Chinese imported reinforcement bars, due to the unfair pricing impose by the exporters.

The China Iron and Steel Association, has already recommended the Central government of the country to increase, the amount of tax rebate on the high grade steel products, which includes, cold rolled steel sheets, zinc- galvanized steel sheet, oriented silicon steel. There is also a chance that, the steel producers might start adding chromium into their steel products instead of boron, in order to receive tax rebate.
 

tax rebate
China steel trade

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