China's new tax regime for ferrous raw materials and steel exports will kick off a new era for the steel sector, one in which demand and supply will become more balanced and the country cuts its dependency on iron ore at a faster pace.
Chinese authorities announced last week that, from May 1, import duties for metallics and semi-finished steel would be removed and that export duties for raw materials such as ferro-silicon, ferro-chrome and high-purity pig iron would be set at 15-25%.They have been able to price in the rebate cuts even before the announcement, causing prices to increase continually in the first four months of the year. Take for example, hot-rolled coil exports from China, which have increased by 44% between January 20 and April...