China raised tariffs on some steel
materials, and removed rebates on cold-rolled products, as authorities ramp up
efforts to overhaul the sector and tame a surge in prices.
The export tariff on ferrochrome -- used
in stainless steel -- will rise to 40% from 20% starting Aug. 1, and the levy
on high-purity pig iron will increase to 20% from 15%, the Ministry of Finance
said. Export tax rebates will be removed from 23 items, including some
cold-rolled coil products, it said.
The moves are aimed at promoting the
transformation of the industry, the ministry said. Bloomberg News reported
plans to adjust fees earlier this week.
The world’s biggest steel producer and
exporter is revamping its industry to curb pollution, cap production and keep
more supply at home. China had already scrapped export-tax rebates and raised
tariffs on some products from May. The pivot away from export markets comes
after resurgent demand lifted steel prices to a record earlier this year, and
may tighten global markets that are seeing a boom in consumption as economies
rebound.
Chinese authorities have implemented
patchy output curbs this year, but production has reached record levels amid
booming demand and high margins. The government will use lower exports and
inventories to offset supply shortfalls as it pushes for lower production in
the second half, a researcher at the China Iron & Steel Association said
this week.
The country’s earlier measures to curb
exports have also faltered. After a more than 30% slump in May as the earlier
round of levies took effect, shipments jumped more than 20% in June. The latest
announcement includes the removal of export rebates on a range of galvanized
steels and so-called electrical steels used in transformers, in addition to
some cold-rolled products.
Bloomberg