China will remove rebates on export taxes for certain commodities, including steel exports and fertilizers, the Financial Times reported. The end of rebates follows the imposition of duties by the US Department of Commerce on imports of Chinese-made steel drill pipe after it ruled that Chinese steel producers enjoy unfair subsidies. Exports of Chinese steel products rose 127% year-on-year in the period from January to May. Analysts said that the end of subsidies could hurt domestic steel makers, particularly following Beijing’s decision to remove the renminbi’s US dollar peg. Tighter margins could favor large producers and accelerate consolidation of the steel sector, a major goal for the Chinese government.
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