Steel Exports Remain High as China Plans to Levy Export Duty

---

Researched by Industrial Info Resources (Sugar Land, Texas). As steel exports continue to increase swiftly, China is considering levying export duties on low-end products, and to launch a qualification standard for steel export enterprises as a regulation measure.

Based on the latest statistics published by The General Administration of Customs, steel exports in China reached 7.16 million tons in April, a new monthly record high over the previous record of 5.55 million tons reached December 2006. Billet exports reached 0.87 million tons, an increase of 31.82% compared to March’s total. Total steel product exports in the first four months reached 21.28 million tons, an increase of 132% compared with the same period of last year. Billet had an increase of 902.2% for a total of 2.65 million tons compared to the same period last year.

Rushing for the last bus may be the main reason for the swift increase of steel exports as several regulation policies were published in April. The export tax refund rate for part of steel products was cut off. Export permits will be required for the export of 83 steel product entries in the Harmonized Commodity Description and Coding System (HS) according to related stipulations in the Measures for the Administration of License for the Export of Goods starting on May 20, 2007, according to the Ministry of Commerce and The General Administration of Customs.

The possible scheme is to levy a 5-10% export duty on all steel products or part of them, such as wire and deformed steel bar, in the 83 entries involved in the last regulation. However, the final scheme is not yet decided, and the earliest possible implementation may be the beginning of June 2007.

Chen Xianwen, Director of the Market Investigation Department of China Steel Industry Association, at the Summit Forum of Iron Ore Supply Chains 2007 held in Chengdu on May 15-16, 2007, said that it is possible to carry out further regulatory measures such as the levy of export duty, if the swift increasing trend on steel export can’t be kept within limits.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.