China will Cut Export taxes on Few Steel Products and Fertilisers

World - Mohit Shah - Dec 15,2017

Rating -

stars - based on 21 reviews

china will cut export taxes on few steel products and fertilisers

China will stop export taxes for some steel products and import tariffs on steel slag from Jan. 1 2018, as part a series of changes announced by the Ministry of Finance.

China, the world’s top steel producer, may be looking to sell its excess product abroad. The country has exported 64.5 million tons of steel products in the first 10 months of the year, which is down 30 percent from a year earlier. It has been reported that this move is likely to stir concerns among foreign competitors in the United States and Europe.

Export taxes on three fertilizer compounds, namely nitrogen, phosphorous and potash, will be lowered to 100 yuan ($15.14) per tonne, in comparison with the current rate of 20 percent of the total shipment value.

Stainless steel plate export tariffs will fall to 5 percent from 10 percent, while billet tariffs will be 10 percent, down from 15 percent currently. This has been announced on Friday. However, the influence of tariff cuts on steel products may be compensated by growing demand at home, prompted by steady economic growth. According to an analyst, if you look at the current situation of the steel market in China, it will remain really tight at least in the first half of next year because of the impact of the winter decrease.

The China Metallurgical Industry Planning and Research Institute (MPI) expects steel demand to rise in all downstream sectors and reach 726 million tonnes in 2018. Further, China has also taken a very good step and ordered cities across the northern part of the country to cut production by up to 50 percent at industrial plants, including steel mills, as part of its efforts to combat air pollution during the winter.

In the end, the ministry also added that China will further cut tariffs on IT products from July 1, without disclosing any details.