Taiwan Steel Firms Benefit from End of Steel Export Tax Rebates

Taiwan Steel Firms Benefit from End of Steel Export Tax Rebates

Taipei (CENS) - Taiwan`s steel producers will benefit from China`s move to void steel export tax rebates to be effective July 15.
Such move will help reduce export volume of China-made hot-rolled steel as the tax rebate will be reduced to zero from the present 9% beginning July 15, with the move widely considered by domestic steel firms to boost export and sustain steel prices. China Steel Corporation (CSC), Taiwan`s largest integrated producer of steel products, said the Chinese government is discouraging steel product exports, as well as encouraging steel producers to boost production efficiency.
CSC noted steel prices will be sustained with China trying to reduce exports of steel products and prices for raw materials still hovering relatively high, which will likely push up quotations in the Asian market.

T.H. Chen, president of Chung Hung Steel Corp., said China`s move to discourage export of steel products is good news for the entire Asian steel market as China`s steel producers will be forced to raise selling prices after termination of the export tax rebate, with China`s hot-rolled steel makers will likely raise export price to US$710 from present US$650 per metric ton.(by Ben Shen)