SMM Analysis: Lower export tax on stainless steel sees minimum impact

SHANGHAI, Dec 19 (SMM)－ China’s lowered export tax on stainless steel will not drive dramatic increase in exports in 2018, SMM believes.

In fact, major producers of series 200 stainless steel and traders have been lukewarm in their reactions to the news since last Friday, when China announced export tariffs for series 200 stainless hot-rolled coil would be reduced from 10% to 5% from January 1.

The majority of Chinese stainless steel exports were series 300 stainless cold-rolled coil, according to a trader in South China. He added that series 200 stainless hot-rolled coil probably accounts for only less than 1% of exports, therefore any impact is minimum.

Other participants said the destinations of series 200 stainless steel exports are mostly Southeast Asian countries where a preferential tax policy is already in place.  

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