Posted on 09 Dec 2014
According to some market insiders, there
still exists great divergence referring to the policy of cancelling export tax
rebate of steel export and the export tax rebate of steel products won’t be
cancelled easily in 2015.
The soaring in steel production exports triggered global trade frictions
frequently. Source has it that CISA was considering of cancelling tax rebate
for steel products export, which has already influenced the market. The export
order received by Chinese steelmakers in November and December declined
sharply, considering that the tax policy may undergo changes.
At present, part of Chinese steel products can obtain 9% to 13% of tax rebate.
According to industrial insiders, the policy of tax rebate accords with the
principle of WTO.
Chinese steel products bear the advantage to take up the global market. Thus,
related export policy should be of new normal as a result.
Even through Chinese domestic steel demand shrank, Chinese steel exports soared
unexpectedly. Statistics showed that Chinese exported 73.89 million tonnes of
steel products in January to October, representing a YoY increase of 42.2%.
According to CISA, Chinese steel exports is expected to break through 80
million tonnes this year, which will record a new high in history.
The steel products exports is likely to accounted for 10% of Chinese crude
steel production compared to 2% to 3% in the past.
