China raises steel export tariffs again in bid to boost carbon neutral goal

Export tariffs for high-purity pig iron will be lifted to 20 per cent from 15 per cent, and tariffs for ferrochrome will be increased to 40 per cent from 20 per cent

China will also cancel export tax rebates for 23 steel products, including some cold-rolled coils and silicon steel

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China is the world’s top steel producer. Photo: Xinhua

Published: 5:47pm, 29 Jul 2021Updated: 5:47pm, 29 Jul 2021

China will raise export tariffs for pig iron and ferrochrome, and remove export tax rebates for 23 steel products from Sunday, the second adjustment in three months as it seeks to ensure domestic supply while controlling output to curb emissions.

Export tariffs for high-purity pig iron will be lifted to 20 per cent from 15 per cent, and tariffs for ferrochrome will be increased to 40 per cent from 20 per cent, the Ministry of Finance said in a statement on Thursday.

The country will also cancel export tax rebates for 23 steel products, including some cold-rolled coils and silicon steel which have higher added-value compared with carbon steel.

“[The changes] aim to promote upgrade and high-quality development of the steel industry,” said the finance ministry.

China, the world’s top steel producer had already adjusted its tariffs on May 1, when it removed export tax rebates for 146 steel products, hiked pig iron and ferroalloys export tariffs and exempt some temporary import tariffs.

The adjustments came as the country wants to ensure domestic supplies when curtailing production for fewer carbon emissions.

However, as steel demand and prices are still well supported by the global economic recovery, the country’s steel products exports picked up 23 per cent in June after a 34 per cent drop in May.

Meanwhile, steel output in the first half also jumped 11.8 per cent in China, making it harder to keep to the promise of no rise in annual crude steel production in 2021.