How Does The Increase Of Stainless Steel Export Tax Rebate Rate To 13% Affect China’s Domestic Stainless Steel Market

According to the announcement by the Ministry of Finance and the State Administration of Taxation on March 20, 2020, the export tax rebate rate for some products will be increased. especially, stainless steel seamless pipes and stainless steel welded pipes will be increased from 10% to 13%.

As soon as the announcement came out of the stainless steel industry, it attracted much attention because many stainless steel products were involved, especially stainless steel strip and pipe exporters.

This is also a slightly difficult 2020 fiscal policy support.

Let’s take a look at the actual export volume of the stainless steel products involved. According to the data of the General Administration of Customs, the total exports of strips, pipes and other products involved in 2019 are 674,500 tons, while the total stainless steel exports in China in 2019 are 36,766,000.

The number of tons involved is about 18.44% of the total exports, and the main products are stainless steel narrow bands, stainless steel welded pipes and stainless steel bars. (There is no data for stainless steel machine endless belts and other stainless steel fabrics in the list.)

In general, increasing the export tax rebate rate of some stainless steel products is good for the stainless steel industry. Under the uncertain domestic demand this year, stainless steel companies may seek more export opportunities, and the export volume of stainless steel may also be encouraged by the government in the later period may improved.