SteelOrbis Shanghai
The Customs Tariff Commission of China's State Council has announced the details of the new export tariff rates to be imposed on steel products and raw materials effective from January 1, 2008.
The export tariff increases are greatest in regard to raw materials and semi-finished products. Among finished products, the bigger increases are to be seen in wire rods, narrow strips and welded tubes, while the duties on other varieties remain unchanged or see limited change.
Looking at the adjustments in detail:
- The export tariff on ferroalloys such as ferromolybdenum, ferrotungsten and ferrotitanium has been raised to 20 percent from the previous rate of 10 percent.
- The export tariffs on ferrosilicon and siliconmanganese remain unchanged, respectively at 15 percent and 10 percent. However, the government is expected to increase the tariff rate on ferrosilicon to 25 percent and that on silicomanganese to 20 percent.
- The export tariff on coke and related products has been adjusted from 15 percent to 25 percent.
- The tariff on semi-finished steel products rises from 15 percent to 25 percent.
- The export tariff increases from 10 percent to 15 percent for wire rod, rebar and narrow strip (including hot rolled, cold rolled, galvanized, color-coated, <600 mm width) and welded tubes (merchant carbon and stainless steel).
- Adjustments to the export tariffs for other varieties have little effect on exports. The tariff rebate as regards CRC and HDG and export tariff as regards HRC remain unchanged.
On the whole, regarding the adjustment of export tariffs for steel products, the number of varieties involved is less than expected, and the fluctuation range is also smaller than expected. In particular, no adjustment has been made for most flat rolled, thereby easing CRC & HRC traders' fears, with the result that CRC & HRC prices are now expected to rise in the domestic market. However, due to the weak demand, the prices of products like wire rod and rebar may continue to drop in the domestic market.