In order to better guarantee the supply of steel resources and promote the high-quality development of the steel industry, with the approval of the State Council, the Tariff Commission of the State Council has issued a notice to adjust the tariffs of some steel products, starting from May 1, 2021. Among them, pig iron, crude steel, recycled steel raw materials, ferrochrome and other products to implement zero import tariff rate; We will appropriately raise export tariffs on ferrosilicon, ferrochrome and high purity pig iron, and apply the adjusted export tax rate of 25%, provisional export tax rate of 20% and provisional export tax rate of 15% respectively.
Since last year, as the COVID-19 epidemic has been effectively controlled in China, new and old infrastructure construction has been promoted with continuous efforts. At the same time, steel prices, the most fundamental basic materials in infrastructure construction, have continued to rise.
The above adjustment measures will help reduce import costs, expand imports of steel resources, support domestic reduction of crude steel production, guide the steel industry to reduce the total amount of energy consumption, and promote the transformation and upgrading of the steel industry and high-quality development.
Data show that for nearly a year, China’s steel benchmark price index continued to fluctuate higher, as of April 28, the index reached 134.54, a month-on-month increase of 7.83%, year-on-year growth of 52.6%; Increased by 13.73% quarter-on-quarter; The year-on-year growth was 26.61% and 32.97%.
For some primary iron and steel products, zero import tariffs will help increase the import of these products to replace the corresponding domestic production capacity, provide support for the adjustment of steel industry structure and low carbon emission reduction, and at the same time, relieve the consumption of iron ore and energy caused by the sharp rise in demand. And the fact that some steel products are no longer export rebates, clearly issued a signal not to encourage too much export, for the balance of supply and demand in the domestic market is helpful. Both measures will help stabilize steel prices and effectively control the transmission of inflationary pressure to the middle and lower reaches
Export tax rebate has obvious impact on export cost, which will affect the export profit of domestic steel enterprises in the future, but will not affect the demand of the international market
Post time: May-10-2021