Steel Products Prices North America
February 9, 2015
VAT Rebate Cancelation Has No Impact on Chinese January Exports
Written by Sandy Williams
January steel exports from China in rose to an all-time monthly record of 10.29 million tons, surprising analysts who were expecting reduced shipments this month.
Steel shipments were expected to fall after China canceled the export tax rebate for Boron-added steel on January 1. Analysts predicted steel export volume would drop as much 30 percent in the first few months of this year. The continued strong export numbers in January were caused in part by contracts for the month that were signed before the rebate cancellation took effect, according to Citigroup analyst Ivan Szpakowski. February should begin to show a decline in volume as producers adjust their product line for alternative exports. According to some estimates, boron-added steel comprised 30 percent of 2014 Chinese steel shipments.
