China to annul import duties on cast iron & steel semi-finished products

China slapped steel exporters with higher taxes on a range of products as authorities ramp up efforts to cut output and clean up one of the biggest carbon emitters, Report informs referring to Bloomberg.

Rebates on export taxes for some goods will be removed, and tariffs on some products raised starting May 1, the Ministry of Finance said on its website. Import fees on pig iron, semi-finished and scrap steel will be dropped.

The measures highlight an increased focus on servicing the domestic market and come as the country’s steel mills grapple with raw material costs that have surged to historic highs. China churns out half the world’s steel, and is the biggest exporter, but has vowed to reduce output in 2021 as part of a drive to contain carbon emissions from one of its dirtiest industries. The tax changes could alter global steel trade and tighten markets in the middle of a global boom.

The existing levies on imported products were only 1% or 2%. For exported products - including everything from hot-rolled coil to some types of pipes and stainless steel - the removal of rebates means exports are subject to value-added tax. Additionally, the ministry said taxes will be increased on exports of pig iron ore and some ferro-alloys.