China’s Ministry of Finance (MOF) has announced it will retain its 40% export tax rate on steel scrap products in 2017, according to an online report from Hellenic Shipping News.
China currently imports relatively little ferrous scrap to supply its massive steel industry because most of its steelmaking capacity consists of integrated mills with iron ore-fed basic oxygen furnaces.
As China’s inventory of end-of-life automobiles, appliances and obsolete buildings grows, steel and scrap industry analysts have predicted the nation could soon become a significant net exporter of ferrous scrap. While the 40% duty does not prohibit ferrous scrap exports, it does make such shipments unprofitable in many cases.
Of greater concern to steelmakers around the world, China’s MOF also has announced it will reduce the carbon steel billet export tax from 20% to 15% in 2017, effective immediately. According to the Hellenic Shipping News, the steel billet export tax was 25% in 2015 and 20% in 2016 before being lowered to its new 15% rate.
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