Beijing: Despite this week's announcement by the China Iron and Steel Association that the government has revamped the export tax rebate structure for steel products, steel exports unlikely to slow down reports AFX news.
China, which is a key source for steel products, has substantially cut export tax rebates in an attempt to encourage exports of higher quality goods and reduce overall exports. In particular, the value added tax on stainless steel and some specialty types of steel will be reduced from 17% to 5% while an estimated 83 other steel products will see rebates completely eliminated.
The country, which is the world's largest steel producer, has recently faced accusations of 'product-dumping' from a number of countries - who claim their local markets are swamped with Chinese steel products.
However, the massive price differences between Europe and Asia have meant that many importers have indicated a willingness to absorb the increase to prices, thus maintaining the high demand. Additionally, international orders for Chinese steel are expected to spike in the coming weeks as customers attempt to take advantage of the rebates before they are reduced. Domestic watchdog associations have proposed a licensing system for exports that they believe will be more effective to curtail exports. [14/03/07]
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