On 28 April, the Ministry of Finance of China announced that some steel products will see their export tax rebates canceled from 1 May. Most of these products were enjoying a full rebate of China’s 13% VAT on export. This new policy will affect the export price for sure. But actually it will be good for China’s steel export as well as the internaional steel market, because this new policy is announced after global steel price research.
According to the public document, export tax rebates for 146 steel products will be cancelled starting next month. In addition to alloy steel powder under HS code 7205.21.00, the HS codes of the steel products for which the tax rebates will be cancelled range from 7209.25.00 to 7307.99.00.
These products mainly include carbon steel cold-rolled sheets, coated non-alloy steel sheets, non-alloy bars and wire rods, coated non-alloy wire rods, hot-rolled stainless steel coil, sheets and plates, cold-rolled stainless steel coil, sheets and plates, stainless steel bars and wire rods, alloy-added hot-rolled coil, plates, alloy-added cold-rolled plates, coated alloy-added steel sheets, hot-rolled non-alloy and alloy-added rebar and wire rod, carbon and stainless steel pipes and sections.
The new policy affects all exporter companies in China. Thousands of ongoing orders would be affected and some even cancelled due to this new policy. However, Otai can handle to maintain the previous usual price in a short time. So, when there are orders for 4140 plate or flat, let’s finalize them ASAP.
Detailed list of HS code covered in the new policy, as per Annex here.
