Anne’s Avafx Blog

A senior industry executive said that China should execute more liberal export tax rebates for steel products to strengthen the industry, where losses are worsening due to overproduction and lethargic in-house demand.

Luo Bingsheng, deputy head of the China Iron and Steel Association, was quoted as saying in the official Shanghai Securities News on Saturday that China’s rebate policy requires rapid and extensive alterations to soothe domestic prices and maintain competitiveness.

China has amplified export tax rebates several times this year, most recently on March 27.The fall down in exports demand cut China’s consignments of steel products to the rest of the world by 60% in the first 4 months of the year and left China in an odd position as a net importer of steel products in March and April.

Luo also said that losses at 72 large and mid-sized Chinese steelmakers in the first 4 months of this year reached 5.18 billion Yuan that is $759.3 million compared with 63.40 billion Yuan in profit last year. Records also showed losses decline month by month, to 1.87 billion Yuan in April.