China's Steel Export Tax Benefits Will Continue in 2015

According to some market experts, there are major divergences in China's policy to remove the rebates on export duties on steel and steel products, so they will most likely not be canceled in 2015. The sharp rise in exports of steel products from China has caused trade friction in the global steel market.

The CISA (Chinese Steel Manufacturers Association) is considering the elimination of tax credits on the export of steel products, which have already affected the market. Considering that tax policy may undergo changes, Chinese metallurgists are sharply increasing shipments in November and December. Currently, some of the Chinese steel products can receive from 9 percent to 13 percent tax deduction.

According to industry experts, tax rebate policies should be consistent with WTO principles. Chinese steel products have an advantage in the global market. Thus, export-related policies must be regulated. China's domestic demand for steel has declined, and exports of steel mills have unexpectedly skyrocketed. Statistics show that China exported 73.89 million tons of steel products in January-October, an increase of 42.2 percent over last year.

According to CISA, exports of Chinese steel products are expected to exceed 80 million tons in 2014, a new record high in history. Steel product exports accounted for 10 percent of total Chinese steel, up from 2-3 percent last year.