China raises export tariffs on steel products to push industrial upgrading

China will adjust export tariffs on some steel products as part of efforts to push upgrading and transformation of the industry.

Starting August 1, China will raise export tariffs on ferrochrome and high-purity pig iron to 40 percent and 20 percent, respectively, according to a circular issued by the Customs Tariff Commission of the State Council.

Previous rates on the product exports stood at 20 percent and 15 percent, respectively, since May 1.

The decision is aimed at pushing industrial upgrading and high-quality development in the steel sector, the circular noted.

Also on Thursday, the Ministry of Finance and the State Taxation Administration jointly announced that China will scrap export tax rebates on 23 types of steel products.

The specific execution time will depend on the export dates indicated in the declaration form for export goods, according to the online statement by the finance ministry.

The moves come as China is intensifying efforts to transform the energy-consuming steel industry for greener and high-quality growth. The country plans to cut crude steel output to ensure it falls year on year in 2021.

In 2020, crude steel output rose by 5.2 percent year on year to exceed 1.05 billion tons, according to the China Iron and Steel Association. China is striving to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.