China Raises Export Tariffs On Steel Products, Ends Export Rebates

On August 1, 2021, the Chinese government raised export tariffs on ferrochrome and high-purity pig iron to 40 percent and 20 percent, respectively. Since May 1, 2021, the rates on these product exports had been 20 percent and 15 percent. The Chinese government said its goal is to push industrial upgrading and high-quality development in the steel sector.

China’s Ministry of Finance and the State Taxation Administration also announced last week that China will scrap export tax rebates on 23 types of steel products. That policy also went into effect on August 1, 2021. The specific execution time will depend on the export dates indicated in the declaration form for export goods. According to China News, “The moves come as China is intensifying efforts to transform the energy-consuming steel industry for greener and high-quality growth.” Specifically, “The country plans to cut crude steel output to ensure it falls year on year in 2021,” China News said.

Bloomberg has more about this announcement here.

The announcement came after China’s Ministry of Ecology and Environment formally launched the country’s national carbon-trading market. The program program will include more than 2,000 companies in the power sector that are responsible for more than 40 percent of emissions from China’s power generation sector. Reports indicate that the program is likely to be expanded to include several other targeted industries, including chemicals and petrochemicals, steel, non-ferrous metals, building materials, paper, and aviation, but timelines for that expansion are unclear.