China's Steel Policy Change Positive for Indian Steel Makers

The Indian steel industry is being greeted with one piece of positive news after the other. Yet more action by China on its steel industry rounds up that list. The country has announced the removal of VAT rebates on exports of 146 steel products with effect from May,

BY Realty Plus
Published - Friday, 30 Apr, 2021

China's Steel Policy Change Positive for Indian Steel Makers

The Indian steel industry is being greeted with one piece of positive news after the other. Yet more action by China on its steel industry rounds up that list. The country has announced the removal of VAT rebates on exports of 146 steel products with effect from May, 2021. Currently, about a 13% rebate is offered on the export of hot rolled coil, wire rod, rebar by China. Further, import duty on pig iron, crude steel, and steel scrap has been cut while export duty on Ferrochrome, Silicon Steel and foundry pig iron has been raised. In the last few months, China has been on a decarbonisation drive. The steel industry, a key polluting industry, has been clamped down. Output restrictions have been placed on China's largest steelmaking city, Tangshan. The changes in the duty structure thus suggest that the country is ready to address any potential shortages in steel that may come about in China due to the output curbs. The implications of these moves will be felt on International steel prices and prices back home as well. With fewer steel exports, Indian steel players now have even more room to hike prices.