echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Chemicals Industry > China Chemical > Tariff adjustments on some steel products help the steel industry to reduce production

    Tariff adjustments on some steel products help the steel industry to reduce production

    • Last Update: 2021-06-12
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com

    On April 19th, on the steel strand production line of Jiangxi Xinhua New Material Technology Co.


    , Ltd.


    On April 28, the Economic Daily reporter learned from the Ministry of Finance that in order to better guarantee the supply of steel resources and promote the high-quality development of the steel industry, the Tariff Commission of the State Council decided to adjust the tariffs of certain steel products starting May 1, 2021.


    Among them, the zero import tariff rate for pig iron, crude steel, recycled steel raw materials, ferrochrome and other products is implemented; the export tariffs for ferrosilicon, ferrochrome, high-purity pig iron and other products are appropriately increased, and the export tax rate of 25% and 20% are respectively implemented after adjustment.


    This is a timely rain for the healthy development of my country's steel industry.


    The industry generally believes that the above tariff adjustment measures will help reduce import costs, expand imports of steel resources, reduce exports of some products, support domestic reduction in crude steel production, guide the steel industry to reduce total energy consumption, and promote the transformation and upgrading of the steel industry and high quality development of.


    The adjustment of tariffs on steel products has already been expected by the industry.


    According to the China Steel Association's forecast, my country's steel demand will maintain a small increase in 2021.


    Data show that since the beginning of this year, my country's main steel industry has continued to recover, driving a significant increase in steel demand.


    According to calculations by the China Iron and Steel Association, the actual steel consumption of the main steel industry in the first quarter increased by 47%, and the apparent consumption of crude steel in my country was 258.


    Affected by factors such as market demand, my country's steel production has grown rapidly, and steel prices have risen rapidly.


    In the first quarter of this year, my country’s crude steel output was 271 million tons, a year-on-year increase of 15.


      "Under the premise that demand is still growing, it is necessary to limit output and ensure effective supply.


    It is necessary to reduce exports of steel products and increase imports to balance domestic demand.


      According to data released by the General Administration of Customs, in the first quarter, the country exported 17.


    682 million tons of steel products, a year-on-year increase of 23.


      "The tariff measures introduced this time are in line with my country's iron and steel industry's industry positioning of'mainly satisfying domestic demand, not export-oriented', and further strengthen the national policy orientation.
    " Chen Ziqi, Deputy Secretary-General of the Expert Academic Committee of China International Engineering Consulting Co.
    , Ltd.
    Said that exporting low-end steel products is equivalent to exporting resources and energy in disguise.
    At present, my country’s dependence on foreign iron ore is more than 80%.
    Domestic steel mills buy high-priced imported iron ore to produce low-end products.
    They can’t make much money from exporting.
    Instead, they consume energy and leave pollutants and carbon dioxide emissions to themselves.
    .
     

      Ferroalloy products such as ferrosilicon and ferrochrome are high-energy-consuming products.
    The production of 1 ton of ferroalloy consumes about 4000 kilowatt-hours of electricity.
    Exporting such products has increased domestic energy consumption and carbon emission reduction pressure.
    Raising export tariffs can directly increase the export cost of ferroalloy products.
     

      my country's upcoming new tariff measures will encourage the import of primary steel products and promote the import of recycled steel raw materials, which will help meet domestic steel demand, reduce domestic energy and resource consumption, and alleviate environmental pressures.
     

      In addition, the soaring price of imported iron ore has adversely affected the normal operation of my country's steel industry.
    In the first quarter of this year, 283 million tons of iron ore were imported, a year-on-year increase of 8%, and the average import price was US$150.
    79/ton, a year-on-year increase of 64.
    51%.
    Relevant industry analysts believe that my country will implement zero import tariffs on pig iron, crude steel, ferrochrome and other products, which is expected to ease the growth in demand for imported iron ore and stabilize imported iron ore prices.
     

      "This tariff adjustment is conducive to the high-quality development and low-carbon transformation of the steel industry.
    " Chen Ziqi said that the steel industry is the industry with the largest carbon emissions among the 31 manufacturing sectors, accounting for about 15% of the country's total emissions.
    my country strives to "carbon peak" by 2030 and "carbon neutral" by 2060.
    This is a challenge that carbon emitters, including the steel industry, cannot avoid and must act immediately.
    The state has adjusted tariffs on some steel products, and sent the market a policy signal of "resolutely compress steel output" with practical actions, which will effectively guide industry expectations and promote the steel industry to unswervingly follow the path of high-quality and reduced-quantity development.
    (Economic Daily reporter Zhou Lei)


      Transfer from: China Economic Net-"Economic Daily"

      [Copyright and Disclaimer] All copyrighted works belonging to this website must be authorized when reprinting and indicate the source "China Industrial Economic Information Network".
    Offenders of this website will reserve the right to pursue relevant legal responsibilities.
    Any reprint of articles and corporate publicity information only represents the author's personal views, and does not represent the views and positions of this website.
    For copyright matters, please contact: 010-65363056.



    Further reading

    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.