What is the impact of the cancellation of export tax rebates for some steel products on zinc consumption?

SHANGHAI, Apr 29 (SMM)—Export tax rebate of some steel products will be cancelled from May 1, 2021, according to the State Administration of Taxation of the Ministry of Finance. The specific execution time shall be defined by the export date indicated on the export goods declaration form.

Export tax rebate shall be cancelled for galvanized corrugated iron or non-alloy steel wide plates (except for electro-galvanized steel, width ≥600mm), plated or coated iron or non-alloy steel wire, other alloy steel narrow flat-rolled products (width <600mm), and other alloy steel narrow plates (width <600mm) plated or coated by other methods.

According to SMM estimates, total exports of the above products in 2020 stood at about 1.56 million mt, which is estimated to affect 31,000 mt of zinc consumption. Since the beginning of this year, the above-mentioned products are still being exported normally, and orders signed previously will continue to be delivered. It is expected that the impact on zinc consumption this year will be about 10,000 mt.