From August 1, China will again adjust export tariffs on some steel products. The adjustment of the export tax rate policy for steel-related products is the second adjustment since April 27, which means new challenges for steel exports. The products that will cancel the export tax rebate this time are mainly cold-rolled series products, including cold-rolled, galvanized, galvanized, etc., while the export tax rebate rate of cold-rolled series products is 13%. Cold products account for a relatively high proportion of my country’s steel exports, accounting for about 30%. This tariff adjustment is a continuation of the policy in April, mainly to keep steel raw materials in China, reduce the export of low value-added products, and reduce import barriers.
From the data point of view, after the cancellation of some steel export tax rebates for the first time on April 27, the export volume of steel plates in May decreased by 1.76 million tons, while the export volume of steel plates in June was 4.67 million tons. 1.13 million tons more than in May. “On the one hand, it shows that the cancellation of export tax rebates can reduce steel exports; on the other hand, it also shows that foreign demand is still strong, and the cost of canceling export tax rebates can be transferred abroad.
The expansion of the cancellation of export tax rebates will weaken the export price competitiveness of related steel products, while the increase in export tariffs on ferrochrome and high-purity pig iron will affect the export orders of related companies. The goal of this policy is to prioritize internal needs. Conducive to improving the national steel resources security capacity. At present, the overall overseas steel market is showing signs of inflection point. The expansion of steel demand has slowed down, the gap between supply and demand in the market has narrowed, and the driving force for price increases is insufficient. With the adjustment of foreign markets and the recovery of the domestic market, the price advantage of my country’s steel exports has gradually lost, and export orders have declined. At the same time, the scope of export tax rebates has been expanded, and the inhibitory effect on steel exports will be further manifested. It is expected that steel exports will gradually decline in the second half of the year. Exports declined compared to the first half of the year.
