Chinese Govt Increases Rebate on Steel Export

Ministry of Finance of People's Republic of China has today announced increase in export tax rebates for over 1000 products and the announcement will be implemented from 20 Mar'20.

SteelMint learned from its closed sources that key steel products covered under this announcement are HRC and wire rod. Thus the tax refund has been adjusted from earlier 9% to current 13%. Sources anticipate prices to come down after this announcement.

Current Chinese HRC export offers is assessed at USD 455-470/MT FoB China, down by USD 30 since beginning of Jan'20 over dull global market sentiments due to extended New year holidays and COVID 19 outbreak.

According to the latest customs data released, China's finished steel exports reported declined by 27% in the first two months of CY20 to 7.8 MnT as compared to 10.698 MnT in Jan- Feb'19.

The official announcement is expected to be out tomorrow and detailed article will be followed thereafter.