CISA dismisses reports of steel rebate cut

The China Iron and Steel Association (CISA) has denied media reports that China’s Ministry of Commerce is planning to drop a 9% rebate on hot-rolled steel products and cut rebates on cold-rolled products to 9% from 13%, Reuters reported. Qi Xiandong, CISA’s deputy secretary general, said: "I’ve just seen these reports – totally rubbish – nothing like this will happen," and that the government is planning a change in policies on "tolling trade for some semi-finished steel products, not for steel products." The planned move is part of Beijing’s efforts to shut down polluting producers but would not have a great impact on the overall steel market. China’s steel export volumes in April were the highest seen since October 2008 when the financial downturn hit the global market.