Beijing -- China raised export tax rebate rates for a range of polyurethane materials such as TDI from 20 March.
This is part of a larger initiative that increases the export tax rebate for 1,464 products, according to an announcement by by China’s State Taxation Administration on 17 March.
This could help exporters in buisness segments, such as TDI producers. Here, businesses have struggled with excess supply in the domestic market.
For example, Cangzhou Dahua, a leading TDI maker, announced last November it was to suspend production of a 30kT/year TDI facility at one of its subsidiaries, as ‘the price has been low with fierce competition.’
The government believes the rebate may help companies navigate through a dented economy.
Last year China exported 139 kT TDI, up 62% from 2018, said China’s General Administration of Customs. While the volumes were up, the value of TDI exports however, fell by 18% to $223m in 2019.
Over the first two months in 2020 TDI exports such exports were 21kT, almost double the volume from the same period in 2019. The value of exports value grew by only 15% year on year to $28m.
China’s largest overseas market for TDI in January and February was the Netherlands with 3.1 kT, followed by Vietnam with 3kT.
