China cuts tax rebates for steel exports: industry association

China will scrap export rebates on 83 steel products while lowering the rate on 76 others that are more highly processed as of April 15, according to the China Iron and Steel Association.

Analysts said the cuts come as the nation is striving to rein in its surging trade surplus.

The surplus soared to 46.44 billion U.S. dollars in the first quarter of this year, nearly double the 23.3 billion U.S. dollars surplus in the same period last year.

The rebate rate for 76 products including speciality steel, stainless steel products, and cold-rolled steel will be reduced to five percent, according to a notice by the Ministry of Finance and the General Administration of Taxation, which was posted on the association's website.

The other 83 products includes steel wire and steel sheet products, said the notice.

Last September China lowered the rebate rate for 142 steel products from 11 percent to eight percent.

China exported 8.75 million tons of steel products in the first two months of this year, up 139.3 percent year-on-year, according to the General Administration of Customs.

Source: Xinhua