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

03 May 2021 CW Team

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%

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..