Home / Metal News / Scraps & Secondary / How Will Steel Scrap Invoice Scandal Affect Iron Ore and Steel Market? SMM Analyzes
How Will Steel Scrap Invoice Scandal Affect Iron Ore and Steel Market? SMM Analyzes
Jul 24,2017 12:52CST
industry newssmm insight
Source:SMM
China’s State Administration of Taxation has launched a nationwide crackdown following exposure of false steel scrap invoice in Anhui last week. 

SHANGHAI, Jul. 24 (SMM) – China’s State Administration of Taxation has launched a nationwide crackdown, mainly targeting 12 provinces, including Jiangsu and Zhejiang following exposure of false steel scrap invoice in Anhui last week. 

China Rebar Stocks Grow Much Faster than Hot-Rolled Steel, SMM Says

This event will have big impact on medium and large steel mills, especially SOEs, SMM understands. Scrap metal value-added tax (VAT) invoice has been suspended from issuing in Jiangsu, which will affect steel scrap delivery to steel mills. 

If the crackdowns last for only a short time, steel mills could produce normally with steel scrap stocks on hand.

How Will Iron Ore Perform in H2 After Bull Run in H1 2017? SMM Reports

However, if the checks last for a long time, steel mills may be forced to reduce steel scrap use ratio, which will, in turn, boost demand for iron ore. Meanwhile, steel scrap will pile up and its prices will drop as a result. The decline in steel scrap prices will put some pressure on iron ore prices, though, since the two can be substituted for each other in steelmaking.    

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


 

steel scrap invoice scandal
iron ore prices
steel prices

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

Most Read
data analysis
data analysis
data analysis
data analysis
data analysis