China to cut some grains, metals, steel export taxes

* Wheat, rice, soybean export taxes scrapped

* Sulphuric acid export tax scrapped

* Indium, molybdenum export tax down to 5 pct from 15 pct

* Tax on some steel and tungsten products halved to 5 pct

* No change to aluminium exports, disappointing smelters

By Niu Shuping and Polly Yam

BEIJING/HONG KONG, June 22 (Reuters) - China will scrap or cut export taxes on a range of grains, metals and other materials from July 1, helping domestic producers to ease oversupply that has built up in many commodities in the last year.

The list of export goods that will benefit includes wheat, rice and soybeans, as well as some steel products, fertiliser and sulphuric acid - the latter a boon to ailing copper smelters.

The document was posted on the Ministry of Finance website, www.mof.gov.cn, on Monday but was apparently removed shortly afterwards.

It said that effective from July 1, export taxes for indium and molybdenum would be cut to 5 percent from 15 percent and the 5 percent export tax on sulphuric acid would be scrapped, while some steel products and some tungsten products will also be cut to 5 percent from 10 percent.

There was no place on the list for aluminium, disappointing smelters that had lobbied Beijing to cancel or reduce the 15 percent tax on exports of primary aluminium as domestic stocks rose and consumption remained lukewarm.

Beijing's policy of restricting exports of energy-intensive products, including primary aluminium, may have left the metal outside the latest list.

To reduce China's 500,000 tonne-stockpile of primary aluminium, which has grown 25 percent in a month, smelters have also been lobbying the Chinese government to resume a 5 percent tax on imports of primary aluminium. But analysts say Beijing is unlikely to do so in the near future because of the political risk of being seen as protectionist.

China scrapped the export tax on corn late last year and it has been ratcheting up the value-added tax rebates applicable to the export of thousands of products, rapidly lowering the export barriers for everything from cotton garments to televisions.

Last month's rebate hikes included those on corn starch and ethanol, as Beijing sought to help the food processing industry.

After five years of bumper harvests, much of which has been salted away in state reserves, Chinese officials are casting around for ways to persuade farmers to keep sowing and reaping, while a sluggish market has taken a heavy toll on farm incomes.

The latest move scraps the export tax on soy, rice and wheat from 3 percent. China is already the world's top importer of soy and a net exporter of rice. This year it has been a net importer of wheat, reversing a solid export position seen in 2007 and early 2008. China suspended wheat exports during much of 2008.

Analysts said the latest move was unlikely to spur exports of China's wheat or wheat flour as Beijing has kept domestic prices higher than international prices to aid farmers.

"China has no advantage in wheat exports. Prices are not competitive," said Ma Wenfeng, an analyst with Beijing Agribusiness Consult Ltd.

Attracted by lower international prices, Chinese flour mills have been importing wheat since late last year.

"There is no more price advantage: two to three weeks ago international prices were higher than domestic prices, but now the two are about the same," said Ma.

(Reporting by Niu Shuping and Tom Miles; Editing by Ken Wills)