China's cold rolled coil and hot-dip galvanized coil trade has been weak over the past week, after the removal of value-added tax cuts boosted prices and persistent fears over new export duties kept sellers and buyers quiet.
There is a widespread belief that Chinese tax authorities will impose a 15-25% flat steel export tax in August or September, in addition to the imminent removal of VAT reductions for exports of cold rolled coil, galvanized sheet and silicon steel.
Steel mills and trading houses are demanding that buyers bear the risk of possible export duties on their offer prices, but this has only helped further dampen buying interest after the recent price hikes, industrial sources told foreign sources.
And limited export allocations mean that steelmakers are not willing to make any concessions.
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