Export rebate rates adjustment for some chemicals

China will increase export tax rebates on almost 1,500 products from March 20, the finance ministry said on Tuesday, as the government looks to ease the pressure on companies hit hard by the coronavirus outbreak. The Ministry of Finance said 1,084 products, would have the rebate raised to 13%, while another 380 products will see the rebate rise to 9%. It did not specify the previous rebate rates.

The adjustment won't have direct impact on benzene. However, the adjustment on downstream derivatives may boost product exports, which is expected to support benzene demand. The rebate of styrene monomer and ethylbenzene would be raised from 10% to 13%.

The rebate of ABS, PS and EPS would be raised from 9% to 13%. Impact on ABS and PS is limited due to low exports. In 2019, China exported 262kt of EPS. The move may boost EPS export market.