Chinese mill reduces HR export price for S. Korea

SteelOrbis Shanghai A certain Chinese mill has made the decision to reduce its HR price to South Korea for May shipment. The producer first reduced its price from USD 545/mt CFR to USD 537/mt CFR, before cutting it again to USD535/mt CFR - a total decrease of USD10/mt. However, compared with the prices for April shipment, the adjusted price is still USD 15/mt higher. Other mills which export HR to South Korea haven't announced any price list changes yet. According to reports, the price decrease was due to the strong pressure which was brought to bear on the Chinese steelmaker by Korean importers. Besides, there is another issue which may affect Chinese HR prices negatively. It is now rumored that China's tax rebate will be cancelled in April or May. As a result inventory levels may be expected to increase in China's domestic market, causing a reduction in domestic market prices, and thus adversely influencing the export price. Korean importers also indicated that there were many other factors affecting the price, and that it is still hard to tell which way the price trend will go.