BBN steel actively respond to the adjustment of tax rebate for steel export

In order to better guarantee the supply of iron and steel resources and promote the high-quality development of the iron and steel industry, the Ministry of Finance and the State Administration of Taxation announced on April 28 that the export tariff of ferrosilicon, ferrochrome, high-purity pig iron and other products should be appropriately increased from May 1. After the adjustment, 25% export tax rate, 20% provisional export tax rate and 15% provisional export tax rate should be implemented respectively. At the same time, the export tax rebate of some iron and steel products will be cancelled. Judging from the list, it contains 146 specific products such as alloy steel powder and stainless steel plates.

Industry insiders pointed out that after the adjustment, export tax rebates for some high value-added products such as electrical steel, household appliances and automobile steel will still be retained, which will help to optimize the steel export structure and regulate the export of general products in the medium and long term. However, steel export is the market-oriented choice of enterprises. At present, there is still a mismatch between supply and demand in overseas markets. The price difference between domestic and foreign steel is large, and the adjustment of export tax rebate policy may have little short-term impact.

BBN steel believes that steel production and trade enterprises should adapt to the situation and actively adapt to the new pattern of steel import and export. On the one hand, we can adjust the product structure and improve the scientific and technological content and added value of export products. In 2020, some steel enterprises have made optimization and adjustment, moderately reduced the export of some low-end materials with high market competition pressure, and focused on the export of high-end and influential materials in the market; On the other hand, we should deeply cultivate the domestic market, actively serve downstream customers, help the development of China's medium and high-end manufacturing industry, stimulate demand through indirect export of downstream products, and strive to achieve import substitution in the field of high-end high-quality steel; Finally, in the context of encouraging the import of steel and raw materials, trade enterprises can find import opportunities through actively docking overseas resources.