The China Iron and Steel Industry Association (CISA) has proposed the government to relax measures to control steel exports by subdividing export tariff codes (HS codes) and refund of value-added taxes on exports of high-value-added goods, as per Japan Steel Federation (JSF). The proposal aims to strengthen international competitiveness by promoting exports of value-added products.
China’s steel demand remained sluggish under the zero-COVID policy and, therefore, it has been anticipated that exports might rise.
JSF held a briefing on the supply and demand situation on 27 March, 2022. During the briefing Yutaka Shimizu, Chairman of the Supply and Demand Research Committee, emphasised that steel exports are shifting to high-value-added products while exports of general-purpose products are steadily declining.
In addition, the replacement plan will focus on replacing the old equipment by new ones. The annual production capacity is expected to reach 200 million tonnes (mnt). Furthermore, the capacities in northern region will be shifted to the south, with the share of the EAF route being around 56%.
Note: This article has been written in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.
Leave a Reply