The Ministry of Finance website on April 28 news, in order to better guarantee the supply of steel resources and promote the high-quality development of the steel industry, with the approval of the State Council, the State Council Tariff Commission recently issued a notice on the adjustment of tariffs on some steel products, it is clear that from May 1, 2021, the adjustment of tariffs on some steel products. Among them, pig iron, crude steel, recycled steel raw materials, ferrochrome and other products to implement zero import tariff rate; We will appropriately raise export tariffs on ferrosilica, ferrochrome and high purity pig iron, and apply the adjusted export tax rate of 25%, provisional export tax rate of 20% and provisional export tax rate of 15% respectively.
The Office of the Tariff Commission of the State Council said the adjustment measures will help reduce import costs, expand imports of steel resources, support domestic reduction of crude steel production, guide the steel industry to reduce total energy consumption, and promote the transformation and upgrading of the steel industry and high-quality development.
On the same day, the Ministry of Finance and the State Administration of Taxation issued a notice on canceling the export tax rebate for some steel products, making it clear that the tax rebate for some steel products will be canceled as of May 1, 2021. The specific execution time shall be defined by the date of export indicated on the customs declaration form of export goods.
“The adjustment of steel-related tariffs was made under the guidance of carbon neutrality.” Lu Zhengwei, chief economist of Industrial Bank, said that under the current global national carbon accounting system, about 20 percent of China’s carbon emissions are generated through exports to meet the production and consumption needs of other countries and regions. Under the current international carbon emission accounting system of production responsibility system, considering the impact of carbon emissions implied in import and export trade, China can optimize the trade structure by optimizing the tariff structure, etc., so as to realize the potential of carbon emission reduction.
Guotai Junan (Securities Research Institute of iron and steel and high-end materials chief analyst Li Pengfei believes that in the context of carbon neutrality, the reduction of crude steel production, adjustment of the production structure is imperative, this year the steel industry production reduction will be achieved in large probability, the basic end of the production cycle, production capacity is no longer the main constraints of the steel industry profit. On the demand side, strong manufacturing demand will continue to boost steel demand.
Post time: 06-05-21