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China announces export tariffs on steel products

The Chinese government announced that it will apply export tariffs on certain iron and steel products as a measure to stabilize international prices.

Other measures by the Chinese government include temporary exemption from tariffs on pig iron and steel scrap and cancellation of export tax rebates for some steel products, to increase supply in the domestic market.

Also, Prime Minister Li Keqiang announced on May 19 that dedicated efforts will be made to advance structural adjustments and discourage energy-intensive projects.

After prices like iron, steel and coal rose more than 30%, the Chinese government determined to intervene in the market.

The Chinese government also urged companies in its country to increase the production of coal and steel, which promised to investigate their respective unfair trade practices.

“We must carefully analyze the reasons behind this round of rapid rise in commodity prices and focus on the heart of the problem, to take action with a specific and holistic approach,” Prime Minister Li said at a Council meeting. State of China.

Steel

The sharp global recession in 2020 significantly reduced global demand for steel, but the impact on demand was not prolonged, and production in developed markets recovered strongly during the second half of 2020.

In fact, production in the main steel consuming sectors in the United States was almost back to pre-pandemic levels for December (for example, machinery was down about 2% from January/February 2020 levels).

While the risk of continued restrictions on physical interaction during the first and second quarters of 2021 is significant, due to the current high level of Covid-19 infections, ArcelorMittal still believes these will predominantly affect services, while manufacturing and construction should remain relatively unscathed.

In addition, the Chinese government will push for openness to recalibrate import, export, and commodity buffer reserves, facilitate customs clearance, and better harness domestic and international markets and resources to more effectively guarantee supply and maintain stable prices.

 

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