Indonesia planning to impose export tax on nickel pig iron
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Update time : 2022-11-01 16:00:25
The Indonesian government planned to issue a nickel export tax policy in the third quarter of this year but it has not yet been implemented till now. However, the news surfaced again last week.
According to the understanding, it is a matter of time before nickel pig iron (NPI) and ferronickel taxes are imposed. If the export tax is implemented, Chinese stainless steel mills will have to spend more money on raw materials.
If a 10% export tax is imposed on the current NPI price, then China-made 304 stainless steel will increase by US$152 per ton.
A Chinese exporter is concerned that once the NPI export tax is implemented, the market share of Chinese materials may be replaced by Indonesia. Moreover, since the beginning of this year, it has been difficult to export 304 stainless steel due to competition from Indonesian goods, so manufacturers have switched to exporting 200 and 400-grade materials that are not produced in Indonesia.
