China supports tax incentives for exporters

The Chinese government says the current rise in steel prices is a temporary trend that does not fix the problems of the Chinese steel industry and has decided to continue to support tax breaks for steel exporters. Therefore, the influx of cheap steel from China will not disappear.

The Chinese planning agency said the upward trend in prices, which appeared in March and slowed slightly in May, is in response to the needs of the Chinese market, especially the construction industry, and will not last long. The increase in demand is the result of efforts to complete construction work as soon as possible, investment in which began in the fall and winter. The government's efforts to cut steel stocks and reduce overproduction have also had an impact.

The Chinese Ministry of Finance announced on its website that it is going to support an export rebate policy, which should have a long-term plan to address the problem of overproduction. This part of the program is designed to address problems in the steel and coal market. The Chinese authorities also announced support for debt restructuring and company consolidation processes in these sectors.

In support of the coal industry, it is necessary to ensure low rates of value added tax. China has been trying for a long time to solve the problem of overproduction of its ferrous metallurgy.

Over the past few months, leading steel producing countries have been targeting China with anti-dumping duties. The number of anti-dumping investigations against Chinese manufacturers in various countries continues to grow.