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  • Shaanxi Tonghui Steel Co., Ltd.

  • E-mail: sxthsteel@sxth-group.com

  • Tel: +86-29-89636557

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  • After Cancel The Steel Export Tariffs
    Jan 22, 2018

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    After cancel the steel export tariffs

    China's Ministry of Finance announced on December 15 that starting from January 2018, the export duties on some steel products, iron scrap and aluminum products will be reduced to zero. The "Japanese Economic News"  said on December 18 that the move from the Chinese point of view is a downward adjustment of export prices, but this may be a countermeasure against the United States and the European Union that impose high anti-dumping duties on Chinese steel and aluminum products.


    1. Steel export tariffs canceled, What impact for the steel industry import and export will happened?

    From our point of view, the abolition of export taxes mostly targets the United States and the European Union in imposing new temporary anti-dumping duties on Chinese steel products. In protecting European steel, which is harmed by overcapacity, the EU imposes tariffs ranging from 43.5% to 81.1%. Therefore, the abolition of export tariffs can be interpreted as a countermeasure against the downward adjustment of export prices and the fight against anti-dumping duties.


    2. 2017 China's steel exports? What are the reasons for the impact of steel exports?


    January-December 2017 China imported 13.3 million tons of steel, an increase of 0.6% over the same period of last year. The growth of China's steel exports will show a downward trend.

    Price is the core competitive factor of China's steel exports. From 2015, China's supply-side structural reforms, steel production capacity decreased year by year, reducing backward production capacity and improving the quality of supply, the price rise also led to the reduction of China's steel exports. On the other hand, China's steel exports suffered trade frictions, but also seriously affect China's steel exports.

    From the historical data, the number of steel exports and domestic steel prices are inversely proportional relationship. The high prices of domestic steel products and the weak competitiveness in the international market will reduce the export volume. In addition, steel mills are also less willing to export in the face of tight domestic demand and strong demand. Against the background of supply-side reform, the supply and demand of domestic steel products are in a state of balance. Steel prices at home and abroad are upside down, and steel mills can sell higher prices in the domestic market without export.


    3. 2018 China's steel exports will show what kind of trend?


    Cancel the export tariffs or increase demand for steel next year is expected next year, steel supply and demand or tight balance. In 2018, China's steel exports to the United States and Europe are bound to slow down, but the export of steel is conducive to the increase of foreign exchange in China. In order to improve the resilience of China's financial risks, the principle of steel exports in 2018 will be directed at Southeast Asia along the "Belt and Road". For example, South Korea, Vietnam, the Philippines, Thailand and Indonesia are all major steel export countries in China.