Tax rebates go up on some exports
March 26, 2009
CHINA will increase the tax rebate rates on some textile, iron and steel, nonferrous metal, petrochemical, electronics and light industrial exports starting on Wednesday.
The decision was made yesterday at an executive meeting of the State Council. The Cabinet agreed that it was necessary to raise tax rebates on some export products to fully implement the country’s economic stimulus package and the support plans for 10 industries.
The exact amounts of the rebate were not revealed by the State Council.
China has raised the export tax rebate rate for textiles four times since last August. It was increased previously in February from 14 percent to 15 percent.
China’s exports plummeted 25.7 percent year-on-year in February, the worst decline in more than a decade, as global demand deteriorated amid the deepening recession.
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Manganese in Iron & Steel Industry
February 9, 2009
Manganese is essential to iron and steel production by virtue of its sulfur-fixing, deoxidizing, and alloying properties. Steelmaking, including its ironmaking component, has accounted for most manganese demand, presently in the range of 85% to 90% of the total demand. Among a variety of other uses, manganese is a key component of low-cost stainless steel formulations and certain widely used aluminium alloys.[3]
The metal is very occasionally used in coins; the only United States coins to use manganese were the “wartime” nickel from 1942–1945, and, since 2000, dollar coins. The EU uses manganese in 1 and 2 Euro coins, due to greater and cheaper availability
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New Development Zone to Take Shape Near Beijing
January 31, 2009
China’s port construction, steel and power giants will pour 192.9 billion yuan (28 billion U.S. dollars) for infrastructure construction in Caofeidian, an island-turned development zone in the Bohai Bay in north China, according to the city government of Tangshan, which administrates the zone.
Xinhua’s source with the government said on Wednesday that 65 billion yuan of the investment will be used for 105 infrastructure projects this year.
The 50-sq km development zone in Hebei Province is 220 km to the east of Beijing. It has been designated as a model of China’s environment-friendly industrial base.
The projects under construction this year will equip the zone with 200 million tons of port handling capacity and an initial industrial production condition for key companies, such as the Beijing Capital Iron and Steel Group’s steel plant, which moved from the capital city’s urban area to Caofeidian in 2007.
The Caofeidian industrial zone was put on China’s list of pilot areas for recyclable economy in October 2005. Chinese President Hu Jintao and Premier Wen Jiabao both paid visits to the zone. They expect it to become a demonstration area for scientific development and recyclable development.
Caofeidian has been mapped to become the country’s largest steel production base by 2010. An evaluation by the country’s environmental watchdog shows the steel plant will ensure 99.5 percent of solid waste and 97.5 percent of waste water are recycled.
State-owned giants like Petro China and Huadian Power Group have also made the zone their energy base.
Caofeidian, once a small sand spit in the Bohai Bay, has extended into a land of more than 50 square km through sea fillings since 2003. The frame of a modern city is beginning to take shape here as crowds of elite technicians and industrial workers swarm to the zone.
Source: Xinhua News Agency
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China Will Not Allow Any New Steel Mill Expansion Project
January 21, 2009
The Chinese State Council has said it will not allow any new steel mill expansion projects and try to help stabilize the domestic and global steel market
China vowed to stop its steel mills from expanding further as industry figures showed the sector carrying massive overcapacity which risks swamping domestic and foreign markets.
The State Council said that it would allow no new steel capacity expansion projects and would adopt a flexible tax policy on steel exports to stabilize China’s share of the global steel market.
The China Securities Journal citing a China Iron and Steel Association reported that Chinese steel capacity reached 660 million tonnes at the end of 2008 although CISA officials later told Reuters the proper figure should be 616 million tonnes.
Source: China Steel Net.com
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China’s largest steel maker is being created
January 1, 2009
Three Chinese steel companies — Tangshan Iron and Steel Co, Handan Iron and Steel Group and Chengde Xinin Vanadium and Titanium Co — agreed on Tuesday to merge, creating the biggest listed steel maker in China.
The three Hebei-based companies were all listed companies under Hebei Iron and Steel Group. The new entity will be the only listed company of the group after the merger.
Annual production of raw steel will be about 32 million tonnes, which will be more than Baosteel’s 30 million tonnes.
Tangshan will merge with the two smaller firms through share swaps. One Handan share will be swapped for 0.775 Tangshan share and one Chengdu share for 1.089 Tangshang shares, according to the agreement.
Handan and Chengde would cease to exist as separate legal entities and their assets, debts, businesses and staff would go to Tangshan, analysts said.
Tangshan said the new company would be the only target of any asset injection by the parent company and thus the only beneficiary.
Hu Yanping, steel analyst with Umetal.com, said the merger would not increase the new company’s profitability in the short term, although its production capacity would be the largest in China.
“The move will enhance steel industry restructuring, which will cushion the blow [against the industry] as the financial crisis has hurt economic growth.”
The plan still needs shareholder and regulatory approval.
Shares of the three companies had been suspended since August 28. Trading resumed on Tuesday.
Tangshan fell by the daily limit of 10 percent to 4.10 yuan (about 58 US cents) from the previous trading day. Handan fell 8.78 percent to 3.43 yuan and Chengde fell by the daily limit to 4.95 yuan.
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