Continuing uncertainty over the potential export duty on Chinese flat steel has led to limited trading activity for Chinese cold rolled coil and hot dip galvanized coil this week, industry sources told foreign sources.
Traders and steelmaker sources said there is still a lot of talk in the market about a possible export tax of 15-25% in August or September. The final removal of value-added tax rebates for CRC, HDG and silicon steel is being considered by the Ministry of Finance to reduce steel exports while at the same time providing more supply in the domestic market, where buying interest is weighed.
Traders similarly avoid entering new positions unless they are very sure of the contract terms. However, key market participants stated that spot price levels as a whole increased due to VAT refund.
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