It is reported that due to tax correction of semis and low end product, appreciation of RMB as well as the inflation in Vietnam, steel export from Yunnan province only registered 50,000 tonnes in January to May 2008 with a value of USD 36.9 million down by 88.2% YoY and 80.6% YoY respectively.

According to the official in related department of the Customs, about 113 out of 203 steel product codes are imposed taxes in 2008. Varieties that are exported in quantity from Yunnan include steel billet, ferroalloy, wire rod and rebar taxes levied being 25%, 20%,15% and 15% respectively.

According to the report, the tax rise led to a steep drop of the provincial steel export in the first five months.