Boron-steel tax rebate cancellation won’t stem Chinese exports for long
- Issue Time
Following a decision by the Chinese Ministry of Finance to cancel the tax rebate on boron-steel exports, it is highly likely that Chinese steel exports will drop sharply during Q1 2015, according to MySteel.
Between January and October 2014 China exported 32.59Mt of boron-steel, which accounted for 44% of the country’s total steel exports during the period. This figure was 42.5% more than for the same period in 2013.
Exports of boron-rebar steel rose 65.3% and export of hot-rolled boron-alloy steel with widths below 60mm rose by 79.9% year-on-year during the first 10 months of 2014.
MySteel analysts predict that the loss of the rebate will reduce Chinese exports over Q1 2015 by almost a third, but won’t affect China’s exports in the medium to long term as those countries importing Chinese steel are heavily reliant upon it.
Furthermore, it is claimed that China will develop policies encouraging the export of high value-added steels and if that prediction becomes reality it will more than make up for any losses incurred by the cancellation of the aforementioned tax rebate on boron-steel.
Between January and November of last year, China exported 83.61Mt of steel between January and October and that figure was up 46.79% year-on-year.
In November last year China’s steel exports reached 9.72Mt, up 13.68% from August 2014.
Source: China Metals