SHANGHAI, Apr. 9 (SMM) – China has decided to introduce tax cuts on iron ore to support the struggled industry. The move will be an encouraging sign of government’s support, but any actual impact is expected to be limited, Shanghai Metals Market’s ferrous branch Steelease foresees.   

The resource tax on iron ore will be reduced to 40%, down from 80%, effective May 1, China's State Council announced. The cut will reduce their tax by 17 yuan, Steelease estimates.

This, combined with a 0.018 yuan cut in electricity price or saving costs by 2 yuan, will help domestic iron miners reduce costs by a total of 20 yuan, far below a loss of 100 yuan or 200 yuan more at miners, Steelease believes.    

The article is edited by SMM and is provided for information purpose only. SMM assumes no liability and does not warrant the accuracy, reliability or completeness of information contained or quoted in the article, either express or implied. SMM further disclaims any liability for losses in connection with the information contained or quoted in the article.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.