Armco Metals Holdings, Inc., a distributor of imported metal ores and a steel recycler in China, today announced that its subsidiaries will possibly benefit from the recent export tariff changes by China government, which export tariffs of 94 commodities closely related with the iron and steel industry will be adjusted starting from May 2015, according to the announcement from the Ministry of Finance of China on April 23, 2015. Iron and steel granules and powders, tungsten, and molybdenum will be exempt from export tariffs, and wrought aluminum products will have a zero tax rate. Export tariffs on 90 commodities in the list will be eliminated and the other four commodities will receive a tax reduction. Export tariffs before the adjustment range up to 25% depending upon the commodity.
During 2014, in response to the excess production capacity in the industry and constantly declining price of iron ore, we significantly reduced our import-based trading business by 57% as compared to 2013, and increased our trading business of exporting metal products. We believe that the elimination and reduction on the export tariff for the commodities may provide us with additional opportunities to grow our trading business.
The iron and steel industry in China are confronted with excess production capacity for several years and squeeze on bank lending, the elimination and reduction on the export tariff for the commodities would relieve the stress on the whole industry undoubtedly and ease the shortage of our working capital in especial besides the trading opportunities bring about. We would take advantage of the favorable policies and work for a turn to better.
ABOUT ARMCO METALS HOLDINGS, INC.
Armco Metals Holdings, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout China and is in the recycling business in China. Armco Metals' customers include some of the fastest growing steel producing mills and foundries throughout China. Raw materials are acquired from a global group of suppliers located in various countries, including, but not limited to, Brazil, India, Indonesia, Ukraine and the United States. Armco Metals' product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore, steel billet and recycled scrap metals. For more information about Armco Metals, please visit http://www.armcometals.com.