The tariff of some iron and steel products will be adjusted from May 1

On April 26, the people's Republic of China issued an announcement on the cancellation of export tax rebate for some iron and steel products. From May 1, 2021, the export tax rebate of some iron and steel products will be cancelled. See the attachment for the specific product list.          

 In order to better guarantee the supply of iron and steel resources and promote the high-quality development of the iron and steel industry, the Tariff Commission of the State Council has decided to adjust the tariff of some iron and steel products from May 1, 2021. Among them, the temporary duty rate of zero import is applied to pig iron, crude steel, recycled steel raw materials, ferrochrome and other products; The export tariff of ferrosilicon, ferrochrome, high purity pig iron and other products should be appropriately increased. After the adjustment, the export tax rate of 25%, the provisional export tax rate of 20% and the provisional export tax rate of 15% should be implemented respectively. The Ministry of Finance and the State Administration of Taxation also jointly announced that the export tax rebate for some iron and steel products will be cancelled from May 1, 2021.          
 
This is timely for the healthy development of China's iron and steel industry. The industry generally believes that the above tariff adjustment measures are conducive to reducing the import cost, expanding the import of steel resources, reducing the export of some products, supporting the domestic reduction of crude steel output, guiding the steel industry to reduce the total energy consumption, and promoting the transformation, upgrading and high-quality development of the steel industry.  
        
The adjustment of tariffs on iron and steel products has been expected by people in the industry. According to the prediction of CISA, China's steel demand will maintain a small growth in 2021. At the same time, in view of China's huge iron and steel output, with a view to achieving the phased goals of carbon peak and carbon neutralization, China's industrial authorities stressed that the iron and steel output should be reduced this year. How to ensure the balance of supply and demand in China's steel market has aroused the attention of all parties.