China adjusts tariffs on steel products

BEIJING - China will adjust tariffs on some steel products to lower import costs as part of efforts to push the industry's upgrading and transformation.

Starting on May 1, China will apply a provisional zero import tax rate on pig iron, crude steel, recycled steel raw materials, and ferrochrome, the Customs Tariff Commission of the State Council said in a circular.

Export tariffs on ferrosilicon, ferrochrome, and high-purity pig iron would be raised to 25 percent, 20 percent, and 15 percent, respectively.

The adjustment is aimed at reducing import costs, expanding steel imports, supporting domestic producers to cut crude steel output, guiding the industry to cut energy consumption, and pushing industrial upgrading and high-quality development in the sector, according to the circular.

The move comes 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 tonnes, according to the China Iron and Steel Association.

Making the steel and other energy-consuming industries greener is an important part of China's broader efforts to cut pollution and tackle climate change.

China previously announced that it would strive to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.

China Baowu Steel Group Corporation Limited (China Baowu), the world's largest steel conglomerate, in January announced its aim to have carbon dioxide emissions peak before 2023, reduce carbon dioxide emissions by 30 percent before 2035, and achieve carbon neutrality before 2050.