Export taxes on semi-finished steel products will be raised to as much as 25 percent and a 15 percent export tax will be imposed on some stainless steel, welded pipes and other steel products in an effort to cool investment in the steel sector, the ministry said, confirming what industry sources told Reuters on Tuesday.
Reducing import taxes on alumina and copper would smooth the flow of raw materials into China, while pressuring margins for alumina refiners and copper smelters that are already struggling with overcapacity.
The current import tax for alumina is 3 percent while the import tax for refined copper is 2 percent. Imports from Chile, a major exporter with a bilateral free trade agreement with China, are already duty-free.
The new taxes will take effect on Jan 1.
Exporters of coking coal will now have to pay a 5 percent tax and coke exporters a 25 percent tax. But the 3 percent import tax on anthracite and coking coal will be removed.
The changes are likely to raise international prices of products for which China is a major supplier, such as steel and coke, while further damaging margins for Chinese producers.
The changes in the way China taxes its coal trade reflects its shift to a net importer of the fuel for several months this year, as its booming economy, combined with a crackdown on unsafe mining, limits its ability to meet domestic demand.
China increased the export tax on low-grade zinc to 15 percent, but kept the export tax on refined lead unchanged at 10 percent. Imposition of the lead tax this summer caused international prices to surge, but also raised costs for Chinese smelters by making imported concentrate more expensive.
It will remove the export tax on aluminium alloy.
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