China looks to reduce steel production volume
Steel

China looks to reduce steel production volume

The Chinese Ministry of Finance and the State Administration of Taxation (customs tariff commission) has announced that it will abolish export rebates (13% on VAT), with effect from May 1.

The Ministry on April 28 announced that it would remove export tax rebates for 146 steel products from May 1, while waiving import tariffs for some products, including pig iron, crude steel, recycled steel raw materials and ferrochrome, while the earlier rebates of 13% would continue. With the move, China looks to reduce steel production volume in the country.

The products without export rebates would include pig iron, seamless and ERW pipes (all sizes), hollow sections, wire rods, rebar, PPGI/PPGL coils and sheets, CRS, HRC, HRS and plates in carbon, alloy/SS, SS/alloy bars and rods, round/square bars/wires, structural and flat products, steel sheet piles, railway materials, articles of cast iron.

Elimination of export rebates is related to abolishing import duties on pig iron, DRI, ferrous scrap, ferrochrome, MS carbon and SS billets to zero with effect from May 1, 2021. In addition, China has raised the export duties on ferrochrome and ferrosilicon from 15% to 20%, on high silicon steel from 20% to 25% and on foundry pig Iron from the current level of 10% to 15% from May 2021.

The price of steel rebar on the Shanghai Futures Exchange hit a record high on April 30, reaching $848 a tonne, the strongest since trading began in 2009.

As assessed by commodity price reporting agency Argus, spot iron ore for delivery to north China reached $193.50 a tonne on April 27, eclipsing its previous high reached in 2011.

Image Source


Also read: End users are paying for steel price rise

Also read: Steel price cooldown not seen anytime soon

The Chinese Ministry of Finance and the State Administration of Taxation (customs tariff commission) has announced that it will abolish export rebates (13% on VAT), with effect from May 1. The Ministry on April 28 announced that it would remove export tax rebates for 146 steel products from May 1, while waiving import tariffs for some products, including pig iron, crude steel, recycled steel raw materials and ferrochrome, while the earlier rebates of 13% would continue. With the move, China looks to reduce steel production volume in the country. The products without export rebates would include pig iron, seamless and ERW pipes (all sizes), hollow sections, wire rods, rebar, PPGI/PPGL coils and sheets, CRS, HRC, HRS and plates in carbon, alloy/SS, SS/alloy bars and rods, round/square bars/wires, structural and flat products, steel sheet piles, railway materials, articles of cast iron. Elimination of export rebates is related to abolishing import duties on pig iron, DRI, ferrous scrap, ferrochrome, MS carbon and SS billets to zero with effect from May 1, 2021. In addition, China has raised the export duties on ferrochrome and ferrosilicon from 15% to 20%, on high silicon steel from 20% to 25% and on foundry pig Iron from the current level of 10% to 15% from May 2021. The price of steel rebar on the Shanghai Futures Exchange hit a record high on April 30, reaching $848 a tonne, the strongest since trading began in 2009. As assessed by commodity price reporting agency Argus, spot iron ore for delivery to north China reached $193.50 a tonne on April 27, eclipsing its previous high reached in 2011. Image SourceAlso read: End users are paying for steel price rise Also read: Steel price cooldown not seen anytime soon

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?