Why China cancel so many kinds of steel products to tax rebates?

May. 06, 2021

On April 28, with the approval of the State Council China, the Tariff Commission of the State Council issued the "Announcement on Adjusting the Tariffs of Certain Steel Products", clarifying that from May 1, 2021, the tariffs of certain steel products will be adjusted. Among them, the zero import tariff rate for pig iron, crude steel, recycled steel raw materials, ferrochrome, and other products is implemented; the export tariffs for ferrosilicon, ferrochrome, high-purity pig iron, and other products are appropriately increased, and the export tax rate of 25% and 20% are respectively implemented after adjustment. 15% temporary export tax rate.

In addition, the Ministry of Finance and the State Administration of Taxation also issued the "Announcement on the Cancellation of Export Tax Rebates for Certain Steel Products" on the 28th, clarifying that from May 1, 2021, there will be alloy steel powder, cold-rolled non-coiled material, stainless steel wire, etc. The export tax rebate of 146 categories of steel products will be canceled.

This breaking news will definitely affect many import customers' orders, such as the prices, and the evaluation of the existing suppliers.

Why China cancel so many kinds of steel products to tax rebates?

Low-carbon economy, eliminating outdated production capacity is the main target.

Steel is a high-carbon product. The abolition of the tax rebate can reduce domestic steel production relatively, achieve the purpose of energy-saving and consumption reduction, and can alleviate the purchase of iron ore by domestic steel mills, and reduce domestic iron ore mining, thus protecting domestic resources. It seems very terrible for many export suppliers. But in the long run, it is very good for sustainable development in China. The introduction of the above-mentioned adjustment measures is considered to be an important measure to reduce China's dependence on imported iron ore and promote the structural transformation of the steel industry. It is conducive to expanding the import of steel resources while supporting domestic steel companies to reduce crude steel output and guiding the steel industry to reduce. Total energy consumption to promote the transformation and upgrading, and high-quality development of the steel industry.

At the same time, due to the reduction in steel exports and the reduction in output, small steel mills with relatively backward levels can be squeezed, so the abolition of the steel export tax rebate is also very beneficial to the country’s integration of domestic steel mills.

Although malleable iron pipe fittings and grooved pipe fittings are also on the list of cancellation of tax rebates, Jianzhi Casting Group, as a professional manufacturer since 1982, compared with other backward production level suppliers, can provide customers more stable delivery time, much better quality products. Most important, we have a stronger ability to resist risks. The introduction of this policy does not have a great impact on us. At the same time, the super response speed also allowed us to formulate an emergency plan in the shortest time to minimize the losses of all parties. 

The interests of customers are paramount, we keep in mind. 

In line with the national reform and development policy, we keep our mission in mind. 

We are duty-bound to provide employees with long-term development plans.

Over 4000 employees, 350 engineers

Over 1,400,000 square meters working area

400,000 tons production capacity annually

25,000 tons finished product inventory

Always ensure 30 days delivery time, NO DELAY!

Jianzhi Casting Group will be your new reliable supplier of malleable iron pipe fittings and grooved fittings. 

Any need anything, just contact us.


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