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China declared on June 22, Tax refund of HRC and CRC steel will be cancelled from July 15,2010

 that news already confirmed today by China Finance Ministry . this news is to approve  some rumors las week that tax refund of steels will be cancelled  and some export duty of ferroalloys will be added. It is very clear that no any futher export duty increased to ferroalloys. even rumors said another 5% will be imposed.

This policy to cacell tax refund of steel , means China does not want to export more steel products to abroad and just meet the domestic demands, therefore to decrease the capacity of HRC and CRC steel.China has over capacity of HRC And CRC and in some period the prices of HRC and CRC were lower than deformed steels and rods, that is not reasonable but in reality it was true. that is to say HRC and CRC 'capacity is more beyond demands .and we can imagine some capacity of HRC and CRC will be closed due to poor demands and lower price.

On the other hand, Ferroalloys export volume has not been increased obviously, so China did not increase further the export duty, and even no change on the export duty, China export of ferroalloys will not be changed and about 5% of its volume may be exported (about 1million tons) in 2010. that is 70% less than 2008.

We do believe there are no any change recently for ferroalloys duty, any rumors is rumors, not the reality.

• [Editor:editor]