South America flat steel import prices fell due to the interest in CIS materials. Regarding China's export tax application...
South America flat steel import prices fell in the week until Friday on August 20, due to aggressive offers from customers for materials originating outside of China and much more competitive alternatives emerging from the CIS.
Market participants said Chinese offers to the continent remain scarce due to uncertainty about a potential export tax expected to be brought into the country, port congestion and prohibitive freight rates. Market talk about China imposing a 15-25% export duty on steel from September has increased, which could raise offer prices by at least $100 per ton across the entire value chain.
Additionally, buyers were concerned about the rise in Covid-19 cases, which led to more port closures in the Asian country. Meanwhile, buyers sought alternatives as CIS origin materials became viable. Lower offers were also being accepted by Brazilian and Japanese producers, which dragged down the overall price in the region.
A factory source from China said, "Regarding demand in South America, we have received a healthy volume of demand or demand for October shipping, and we can also round up and pick up normal booking volumes." said.
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