+
 China cuts VAT rebates on steel exports, tax on raw material zero
Steel

China cuts VAT rebates on steel exports, tax on raw material zero

China has removed Value Added Tax (VAT) rebate on the export of 146 steel products from May 1, a widely discussed move in the market since February.

According to China’s finance ministry website, the rebate of 13% charged on the exports of wire rod, rebar, and hot-rolled coil will no longer be applicable from May 1.

In another announcement, the ministry stated that they also cut the import duty on crude steel, recycled steel, and pig iron from May, and the term for these imports in the overseas markets is ferrous scrap.

Hot-dipped galvanised sheet, narrow strip and cold rolled steel sheet was also included in the list of products with the rebate removed.

Despite the production cuts mandated in the steel hubs of Handan and Tangshan in Hebei province, China's crude steel output has reached the second-highest level in history, as the prices of seaborne iron ore reached a high record. After this comes the move to discourage the imports of steel and loosen the imports of steelmaking raw materials.

The ministry claimed that these measures would reduce the cost of importing and guide the steel industry towards lowering overall consumption.

They also expand the import of iron and steel resources and lend downward pressure to domestic crude steel output, and promote the transformation and high-quality development of the steel industry.

According to the estimates by China Iron and Steel Association, the country’s crude steel output summed up to 3.045 million metric tonnes per day over April 11-20, which is a surge of 4% from early April and 17% higher year-on-year (y-o-y).

According to the benchmark iron ore index (IODEX) published by S&P Global Platts, the spot prices of seaborne 62% of iron ores reached $193.85/DMT cost and freight China on April 27.

During the year 2020, China has exported 53.67 million metric tonnes of steel products, of which wire rod and hot-rolled coil (HRC) reported to be some of the largest steel types.

The rebate was not removed for hot-dipped galvanised coil and cold rolled coil because they were considered higher value-added products. However, market participants suggested that they could be reduced in later announcements.

China has raised the export duty on ferrochrome, foundry pig iron and high silicon steel to 20%, 15% and 25%, respectively, at the same time from 15%, 10% and 20%, effective from May 1.

Image Source


Also read: Steel prices: In a year, HRC up 40%, TMT 30%; Consumption to grow 10%

China has removed Value Added Tax (VAT) rebate on the export of 146 steel products from May 1, a widely discussed move in the market since February. According to China’s finance ministry website, the rebate of 13% charged on the exports of wire rod, rebar, and hot-rolled coil will no longer be applicable from May 1. In another announcement, the ministry stated that they also cut the import duty on crude steel, recycled steel, and pig iron from May, and the term for these imports in the overseas markets is ferrous scrap. Hot-dipped galvanised sheet, narrow strip and cold rolled steel sheet was also included in the list of products with the rebate removed. Despite the production cuts mandated in the steel hubs of Handan and Tangshan in Hebei province, China's crude steel output has reached the second-highest level in history, as the prices of seaborne iron ore reached a high record. After this comes the move to discourage the imports of steel and loosen the imports of steelmaking raw materials. The ministry claimed that these measures would reduce the cost of importing and guide the steel industry towards lowering overall consumption. They also expand the import of iron and steel resources and lend downward pressure to domestic crude steel output, and promote the transformation and high-quality development of the steel industry. According to the estimates by China Iron and Steel Association, the country’s crude steel output summed up to 3.045 million metric tonnes per day over April 11-20, which is a surge of 4% from early April and 17% higher year-on-year (y-o-y). According to the benchmark iron ore index (IODEX) published by S&P Global Platts, the spot prices of seaborne 62% of iron ores reached $193.85/DMT cost and freight China on April 27. During the year 2020, China has exported 53.67 million metric tonnes of steel products, of which wire rod and hot-rolled coil (HRC) reported to be some of the largest steel types. The rebate was not removed for hot-dipped galvanised coil and cold rolled coil because they were considered higher value-added products. However, market participants suggested that they could be reduced in later announcements. China has raised the export duty on ferrochrome, foundry pig iron and high silicon steel to 20%, 15% and 25%, respectively, at the same time from 15%, 10% and 20%, effective from May 1. Image SourceAlso read: Steel prices: In a year, HRC up 40%, TMT 30%; Consumption to grow 10%

Next Story
Infrastructure Urban

Revolt Motors Unveils ‘Azadi From Petrol’ Offer

To mark India’s 78th Independence Day, Revolt Motors, the country’s leading electric motorcycle brand, has introduced its special “Azadi From Petrol” offer, encouraging riders to break free from rising fuel costs and embrace smarter, sustainable mobility.Under this limited-period scheme, customers purchasing any Revolt electric motorcycle can enjoy benefits worth up to Rs 20 million. The package includes zero insurance fees, providing free coverage valued at up to Rs 7 million, along with cash savings of up to Rs 13 million.The initiative highlights Revolt’s mission to make electric ..

Next Story
Infrastructure Energy

Inox Green Signs 182 MW Wind O&M Deal

Inox Green Energy Services Ltd., one of India’s leading renewable energy operations and maintenance (O&M) providers, has signed an agreement with a major diversified Indian conglomerate for the comprehensive O&M of 182 MW of operational wind projects under its renewable energy division.Located across multiple sites in Western India, these projects are integrated with common infrastructure owned by Inox Green. The deal includes converting 82 MW of wind projects from limited-scope to comprehensive O&M, as well as renewing comprehensive O&M for another 100 MW well ahead of sched..

Next Story
Infrastructure Urban

MPL Q1 Profit Rises to Rs 144 Million

Manali Petrochemicals Limited (MPL), a leading petrochemical manufacturer and part of AM International, Singapore, has reported its unaudited consolidated financial results for the quarter ended 30 June 2025.The company posted a consolidated total income of Rs 2.43 billion for the quarter, up from Rs 2.38 billion in the preceding quarter ended 31 March 2025. Profit Before Tax (PBT) stood at Rs 200 million, compared to Rs 159 million in the previous quarter, while Profit After Tax (PAT) rose to Rs 144 million from Rs 108 million. For the full year ended 31 March 2025, MPL recorded a total incom..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?