Ministry of Finance announced to cancel steel export rebate
The Ministry of Finance announced yesterday (June 22nd) on its website to cancel export rebate for certain products, including steel products. The new adjustments will be applicable since July 15th, 2010.
According to the announcement at the Ministry of Finance website, the steel products to see export rebate cancelation includes hot-rolled coil/sheet, hot-rolled plate, cold-rolled coil (<600mm), galvanized steel sheet (<600mm), color-coasted sheet (<600mm) and some sections etc. The steel products involve in the export rebate adjustment are mainly listed under the Tariff Items of 72081-72085, 72089, 72091,72111,72112,72119 etc.
It is understood that around 40% of China steel export will be affected as the export rebate been canceled. "The export rebate cancelation will further worsen the steel mills’ profit situation", said industry insiders.
Very likely, more steel products may flow back to domestic market and bring increasing pressure to already sluggish China steel market.
"The export rebate cancellation, I think, is much in line with government’s efforts to restructure steel industry and tackle the problems of high energy consumption, high pollutant emission", said insiders.