China intends to reduce export tax rebate rate to curb exports of HRC and rebars
Statistics showed that in January and February, China's finished steel exports increased by nearly 30% year on year. As the demand was on the rise, it was expected that the exports will continue to increase in March and April.
China's government considered reducing the export tax rebate rate for low-end products such as hot-rolled and rebars from 13% to 9% to curb exports.
First, many overseas steel mills will not be recovered from the coronavirus pandemic until May at the earliest, which will support China's short-term exports.
Second, China has further tightened its real estate policies by cracking down on illegal credit loans flowing into the real estate market, which has adversely affected steel demands.
Meanwhile, the overseas steel demands remain strong, so China is considering reducing steel export tax rebates to curb exports and indirectly reduce steel production.
