China puts tariffs on steel exports
By Tom Stundza -- Purchasing, 5/22/2007 8:20:00 AM
China is making tariff changes that should raise the prices of the steel products in such global markets as the U.S. The Chinese Ministry of Finance will start levying export taxes of 5% to 10% on 83 types of steel products. In fact, a Bloomberg News Service report says that export taxes actually will be raised on 142 products and import tariffs will be cut on 209 types of goods. The idea is to reduce the national trade surplus that has been irritating other nations.
China is the world's biggest steel producer, and its rising exports of cheap steel have especially bred resentment among trade partners. Independent analyst Michelle Applebaum says the new export taxes will take effect on June 1 with exports of long products being taxed at 10% and flat products (except cold-rolled and galvanized sheet) at 5%. It was also reported that the export tax for semi-finished steel products will increase to 15% from 10% while the export tax rebate for pipe and tube products is expected to be cut from 13% to a range of zero to 5%.
“We believe that pressure by China’s major trading partners is helping to expedite changes in the Chinese government’s somewhat benign attitude towards its steel industry,” Applebaum writes clients. “In fact, the latest announcement is the third export policy change in the last month and a half. On April 10, the Chinese government reduced or abolished the export tax rebate for a number of steel products effective April 15; on April 30, the Chinese government announced it would implement a new export licensing system for steel products, effective May 20.”
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