Tax rebate rate adjustment has a significant impact on the chlor-alkali industry

Since July 1, 2007, the state has adjusted the export tax rebate policy for some commodities, and the main products of the chlor-alkali industry are PVC and caustic soda. The export tax rebate rate for polyvinyl chloride, after falling by two percentage points to 11% last year, is further reduced to 5% this year, while the export tax rebate rate for caustic soda has been reduced from the original 13% to zero.
According to statistics from China Chlor-Alkali Network, by June 2007, the annual production capacity of PVC in China has reached 12.31 million tons, and the annual production capacity of caustic soda has reached 19.21 million tons, which has surpassed the United States as the world's largest producer of chlor-alkali. With the continuous expansion of China's chlor-alkali industry and a substantial increase in production capacity, the export volume of chlor-alkali products is also increasing. Taking 2006 as an example, the export volume of PVC was 373,000 tons, which accounted for 5.58% of the country's total output of 8.24 million tons last year; the export volume of caustic soda was 1.331 million tons, accounting for 8.8% of the country's total output of 15.12 million tons. Therefore, the reduction in the export tax rebate rate has a significant impact on the entire industry.
Due to the rapid development of China's chlor-alkali industry in recent years, production has increased significantly. The main target of consumption for some enterprises to increase production is the international market, and because the domestic market already has a trend of oversupply, export sales have become the future direction of many chlor-alkali enterprises. With the reduction of export tax rebate rate, in order to reduce losses, domestic production companies and trading companies will inevitably raise prices, while foreign customers receive certain difficulties in accepting price increases, and it will take some time. Some chlor-alkali enterprises export long-term orders signed with overseas customers for caustic soda exports. The adjustment of export tax rebates will cause enterprises to suffer certain losses. If the number of export exports is reduced, this part of the supply will be digested in the domestic market, and competition in the domestic market will inevitably intensify. It will also affect the domestic market price to a certain extent. On the whole, the impact of this export tax rebate rate adjustment on caustic soda is significantly greater than that of polyvinyl chloride. On the one hand, the tax rate of polyvinyl chloride is lowered by 6 percentage points, while 13% of the export tax rebates on caustic soda are all canceled. On the other hand, the export volume of caustic soda is greater than that of polyvinyl chloride, and the dependence on exports is higher. In addition, the current adjustment of export tax rebates related to chlor-alkali industry products, in addition to polyvinyl chloride and caustic soda, also includes chlorinated paraffin, methane chloride, epichlorohydrin and other products. Although the export volume of these products is small, it also affects the profits of the chlor-alkali industry to some extent.
As the export volume of PVC and caustic soda in China is increasing, the change in export tax rebate policy will affect the export volume of China's chlor-alkali products to a certain extent in the coming months. According to the reduction of PVC export tax rebate rate by 6 percentage points and the elimination of all calculations for caustic soda tax refunds, the export company’s profit loss per ton is in the range of 30 to 50 US dollars. In the short term, this part will be fully passed on to demanders, and customers will accept it as certain. Difficulty. If, in the case of a gradual increase, there is a strong demand abroad, overseas customers will gradually accept it. Therefore, it is expected that the volume of exports in the second half of this year will show a gradual upward trend after falling.
Although the adjustment of export tax rebates will have a certain impact on the internationalization of China's chlor-alkali enterprises, China's chlor-alkali products have relatively strong competitiveness in the international market and have certain advantages in product quality and product prices. Therefore, export tax rebates The adjustment will not stop the export of chlor-alkali products and export roads. Based on the understanding of the import and export sides, gradually increase the export prices, and gradually eliminate the impact of the tax rebate adjustment will gradually be accepted by overseas customers. In addition, PVC and caustic soda in foreign countries still have a certain contradiction between supply and demand, and require a certain amount of imports, so it will not drastically reduce imports due to price increases.
Since the adjustment of export tax rebates is an inevitable trend, the chlor-alkali enterprises should change their tax refund policy to achieve "two full, two unified, and one firm." It is necessary to fully estimate the impact of the export tax rebate adjustment on enterprises, to think of difficulties ahead of others, to make full preparations, and to reduce impacts in many aspects; to work together to unify ideas and avoid vicious prices in domestic markets and export markets. Competition; strengthen the promotion of unified external communications, allowing foreign importers to have a deep understanding of China's domestic policy adjustments, so as to achieve the purpose of enhancing understanding; and we must unswervingly follow the path of internationalization. The international development of domestic chlor-alkali enterprises cannot be stopped halfway through short-term difficulties. Foresighted and promising enterprises must be simultaneously developed in the domestic and foreign markets. In addition, China's chlor-alkali industry has occupied a very important position on a global scale, and international development is also an inevitable trend for the future development of China's modern chlor-alkali enterprises.
The overall analysis shows that although changes in the export tax rebate policy will have some negative impact on the development of China's chlor-alkali industry, it is also an opportunity to some extent. As the export of China's chlor-alkali products has only seen great development in recent years, the experience is not very rich. Last year, the export of PVC also suffered anti-dumping from India and Turkey. Under such circumstances, domestic chlor-alkali enterprises can take advantage of this export tax rebate adjustment to standardize China's export market, strengthen communication and exchanges between enterprises, and reduce trade disputes that may arise from future exports. On the basis of the great powers, we must establish the image of our chloro-alkali powers before the world. Therefore, domestic chlor-alkali enterprises should rationally treat changes in export tax rebate policies, and take this opportunity to turn disaster into profits, thus ensuring the healthy and orderly development of the entire industry.

Leaking Tester

Air Leak Tester,Pressure Leak Tester,Vacuum Leak Testing,Helium Leak Tester

Zhoushan Longwen Machinery Technology Co., Ltd. , https://www.longwenmachinery.com