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Vulcan
Steel News January 13, 2015 05:15:48 AM

Tax rebate declines Chinese steel exports

Paul Ploumis
ScrapMonster Author
The steel exports in China, hiked to a record in the year of 2014, during the slow down in the economic and domestic growth of the country, and that was before a change issued in the tax, which is expected to decline the shipments of the country this year.
Tax rebate declines Chinese steel exports

BEIJING (Scrap Monster): In the year 2014, China exported about 93.87 million tonnes of steel, which is about 51 percent higher than the exports which recorded in the year 2013. The export of steel increased by 4.6 percent and reached to 10.17 million tonnes in the month of December, which was recorded to be the highest monthly export.

As the domestic demand for steel from the construction sector of the country declined, the steel mills in China, exported their production to overseas buyers. But this year the exports in the country are expected to decline, af6ter the government of the country cancelled all the export tax rebates for steel alloys which contained boron in it.

A senior research analyst, at Bernstein & Co, Vanessa Lau, based in Hong Kong, stated that, there is an intention to decline the exports of lower value steel products from China. It is another way for the government to ask the steel mills in the country to store the capacity over time and to consolidate.

The government removed the tax rebate, which was valued up to 13 percent of the steel products which contained boron in it, and the law will be effective from the current year. It is predicted that, the overseas sale of steel alloys will decline by 20 percent to 30 percent, in the first quarter of production, due to the removal of rebate. The 31 percent of the country’s total steel exports in the first 11 months of the year 2014, depended on the export of boron alloyed steel sheets.