[Ferro-Alloys.com] China will start levying tariffs on some imported steel products, which are re-exported after processing, from July 31 as part of efforts to tackle overcapacity in the country's bloated steel industry, the finance ministry said on Jul 11th.
Import tariffs will be imposed on 78 steel products, including wire-rod, plates and metal sheets. The products to which the tariff will apply can be made locally to meet the quality requirements of manufacturers, the ministry said in a statement on its website.
While Beijing said the latest tariff regulation was aimed at reducing the supply glut in the steel sector, its impact on the market would likely be limited.
China, the world's top steel producer, imports only about a million tonnes of steel products each month versus domestic monthly output of over 70 million tonnes.
Companies that have import contracts signed before July 31 and have those shipments arriving before end-2014 will be exempt from the new tariffs, the government said.
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