This week we bring you the latest information on China's cancellation of export tax rebates for certain steel products.

In order to promote the transformation and upgrading high-quality development of the steel industry, with the approval of the State Council, the Tariff Commission of the State Council issued an announcement that starting from August 1, 2021, the export tariffs of chromium iron and high-purity pig iron will be appropriately increased, and 40% will be implemented after adjustment. 20% export tax rate. At the same time, the export tax rebate of some steel products will be canceled.

　　 "The above-mentioned measures are mainly to reduce exports." Xu Xiangchun, information director of China Steel Network, said in an interview with a reporter from Shanghai Securities News. Prior to this, China canceled some steel export tax rebates, which accounted for more than 60% of steel exports. The further abolition of export tax rebates for cold-rolled, coated steel plates, electrical steel and petroleum pipes this time means that the export tax rebates for most steel products have been returned to zero.

　　 In Xu Xiangchun's view, the abolition of the steel export tax rebate has increased the cost of steel exports and is conducive to curbing the growth momentum of steel exports. If it is necessary to further restrict steel exports and reduce the volume of steel exports, it is also possible to impose export tariffs on steel in the future.

　　 The Office of the Customs Tariff Commission of the State Council issued an announcement at the end of April this year, announcing that from May 1, 2021, tariffs on certain steel products will be adjusted and export tax rebates for certain steel products will be canceled. Among them, the zero import tariff rate for pig iron, crude steel, recycled steel raw materials, chromium iron and other products is implemented; the export tariffs for chromium iron,high-purity pig iron and other products are appropriately increased, and the export tax rate of 25% and 20% are respectively implemented after adjustment.15% temporary export tax rate.

　　Customs data shows that China exported 37.382 million tons of steel products in the first half of 2021, a year-on-year increase of 30.2%. In the same period, the accumulated imported steel products amounted to 7.349 million tons, an increase of 0.1% year-on-year; the accumulated imports of steel billets amounted to 5.749 million tons, an increase of 3.8% year-on-year. Considering the import of steel billets, China's net export of crude steel in the first half of 2021 was 25.542 million tons, and the net export volume has exceeded 17.03 million tons in the whole year of last year.

According to the analysis of the latest monthly report of the China Iron and Steel Association, from the perspective of exports, the market’s expectations for further adjustments to export policies have gradually increased since June. Orders are more cautious, and orders have shrunk.

　　 In addition, combined with the production cycle of the steel industry, the industry's new export order index reflects the steel export situation two months in advance. The current new export order index has fallen to the contraction range for two consecutive months, indicating that the domestic steel export situation will have greater downward pressure in the later period.

　　 China Steel Association believes that in terms of imports, given the relatively high level of profit in the steel industry in recent years, China's steel imports in the first half of 2021 will be basically the same as in the first half of 2020, and a sharp drop of 43% from the second half of 2020. The surge in China's steel imports in 2020 began in June, and the monthly import volume from June to November reached 2.23 million tons. Under the high base effect, China's steel imports in 2021 will hardly increase significantly year-on-year.

The above is the general content of this consultation, for detail, please visit official website.