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

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Vedanta Metal Bazaar Expands to Global Markets

Vedanta Aluminium has expanded its digital e-commerce platform, Vedanta Metal Bazaar, to international markets, enabling overseas customers to order and purchase aluminium products online.The platform will now be available to buyers across Asia, Europe, Africa and the Americas, providing a digital gateway for export transactions with 24x7 access.In FY26, Vedanta Metal Bazaar processed transactions worth nearly $4.1 billion, or over Rs 380 billion, and fulfilled more than 23,000 orders. The platform is also used regularly by more than 550 MSMEs in India alongside large OEM customers.The export ..

Next Story
Infrastructure Urban

Ramky Infrastructure Q1 FY27 Revenue Rises 24.3%

Ramky Infrastructure Limited reported a 24.3% year-on-year increase in consolidated revenue from operations to Rs 471.2 crore for Q1 FY27, compared with Rs 3.79 billion in the corresponding quarter of FY26.Standalone revenue from operations rose 27.5% YoY to Rs 4.51 billion from Rs 3.54 billion, while total standalone income increased 35% to Rs 5.32 billion.Consolidated profit before tax stood at Rs 540.9 million during the quarter. The company highlighted a sharp sequential improvement compared with a pre-exceptional loss of Rs 190.1 million in Q4 FY26.Two of the three projects awarded during..

Next Story
Technology

LTTS Launches AgenticIQ AI Platform for Engineering

L&T Technology Services (LTTS) has launched AgenticIQ, an end-to-end agentic AI platform designed for engineering and manufacturing organisations.The platform is aimed at helping enterprises move beyond isolated AI pilots by enabling autonomous, multi-agent workflows across engineering, product development, manufacturing, industrial operations and customer experience.AgenticIQ is built on LTTS’ Engineering Intelligence portfolio and converts existing engineering capabilities into specialised, reusable AI agents. Its planning-first architecture is embedded into engineering and production ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement