The 5% export tax rebate on alloy steel is likely to be removed from September 1 after steel exports surged 21% year-on-year in July to a monthly record 7.21 million tons, the China Securities Journal
reported, citing a well-informed source. Steel exports were up 38% on June. Exports of steel billet amounted to 230,000 tons, more than the previous five months combined. Removing the rebate is expected to peg steel exports back by around half a million tons a month. China’s producer price index (PPI) – a measure of the value of products when they leave the factory – grew by a 12-year high 10% year-on-year in July, raising fears of further hikes in consumer prices. Steel products have a heavy weighting in PPI calculations.