FOCUS: Changes in Chinese tax policy will benefit billet, long steel from CIS, Turkey

Recent changes in Chinese tax policy have resulted in significant rises in the prices for steel billet and finished long steel products from the CIS and Turkey.

On Wednesday April 28, China’s ministry of finance announced that, in order to better guarantee the supply of steel resources and promote the high-quality development of the domestic steel industry, the import tariff for certain steel products originating from outside the Association of South East Asian Nations (Asean), including square billet, was to be reduced from 2% to zero from May 1.
This meant that steelmakers from outside of the Asean region had to price their product 2% below Asean producers to remain competitive in the Chinese market.
“This [import duty cut] is certainly a likely business possibility for CIS and Turkish suppliers to sell billets to China,” a Europe-based trader said.
At the same time, the East Asian country also removed export tax rebates on a number of steel products, including rebar.

In addition to the positive effect on prices, market participants expected that these changes would lead...

Published

Cem Turken

Vlada Novokreshchenova

May 06, 2021

19:41 GMT

Dnipro, Mugla