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China has removed VAT rebates on exports of 146 steel products from May 1

April 29, 2021

China has removed VAT rebates on exports of 146 steel products from May 1, a move the market had been widely anticipating since February

 

The rebate of 13% of the VAT charged on exports of hot-rolled coil, wire rod, and rebar will no longer apply from May

 

Cold rolled steel sheet, hot-dip galvanized sheet and the narrow strip was also on the list of products that have had the rebate removed

Import duty on pig iron, crude steel, and recycled steel was also cut its term for what overseas markets call ferrous scrap to zero from May

 

The move to discourage steel exports and loosen imports of steelmaking raw materials comes at a time when China's crude steel output in April reached the 2nd-highest level in history,espite production cuts mandated in the steel hubs of Tangshan and Handan in Hebei province, and as prices of seaborne iron ore reached a record high

 

The measures will reduce the cost of importing, expand the import of iron & steel resources and lend downward pressure to domestic crude steel output,guiding the steel industry towards the reduction of overall energy consumption, promoting the transformation and high-quality development of the steel industry