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On April 28, with the approval of the State Council, the Tariff Commission of the State Council issued the "Announcement on Adjusting the Tariffs of Certain Steel Products", clarifying that from May 1, 2021, the tariffs of certain steel products will be adjusted.

Among them, the provisional zero import tax rate is imposed on pig iron, crude steel, recycled steel raw materials, ferrochrome and other products. Appropriately increase the export tariffs of ferrosilicon, ferrochrome, high-purity pig iron and other products, and implement the export tax rate of 25%, the temporary export tax rate of 20%, and the temporary export tax rate of 15% after the adjustment.

In addition, the Ministry of Finance and the State Administration of Taxation also issued the "Announcement on the Cancellation of Export Tax Rebates for Certain Steel Products" on the 28th, clarifying that from May 1, 2021, there will be alloy steel powder, cold-rolled non-coiled material, stainless steel wire, etc. The export tax rebate for 146 categories of steel products will be cancelled.

In fact, for the country to adjust the import and export tax rate of steel products, Luo Tiejun, vice chairman of the China Iron and Steel Association, said at the first quarter information conference of the China Iron and Steel Association held a few days ago that the China Iron and Steel Association has been calling for the country to continue to encourage high Export of advanced steel products such as value-added and high-tech content.

The steel products exported by my country must be high-quality and needed by the world, and it is necessary to establish a reputation for high-quality steel products in China. In terms of encouraging the import of primary steel products, it is recommended to appropriately adjust the import tariffs on primary steel products, promote the facilitation of the import of recycled steel raw materials, and effectively increase the supply channels of iron. China Iron and Steel Association hopes that the country will introduce export tax adjustment policies as soon as possible.

According to the monitoring of China Iron and Steel Association, in the first quarter, steel prices in the domestic market maintained an upward trend. By the end of March, the China Steel Price Index (CSPI) rose to 136.28 points, an increase of 9.44% from the beginning of the year and a year-on-year increase of 37.37%.

Qu Xiuli, vice chairman and secretary-general of the China Iron and Steel Association, said that at present, the steel industry is facing the challenge of continuously increasing corporate cost pressures.

At present, the prices of raw materials such as iron ore, scrap steel, coke, and coal used in steel production are still at a high level, and are on the rise. Logistics costs and environmental protection costs have also continued to increase, which has promoted the continuous increase in production costs of steel enterprises and further increase in operating pressure. It is necessary to gradually digest unfavorable factors through benchmarking and tapping the potential.

"We believe that the rise in steel prices is phased. The steel industry also hopes to maintain the smooth operation of the industry, and prices should not fluctuate greatly." Qu Xiuli said.