Following sharp drops in ex-China HRC prices, more competitive offers and deals have been reported recently. As a result, fears regarding the possible introduction in China of export duty for HRC (and other flat steel production) at 10 percent at the lowest have reemerged in the market.
Some tonnages for ex-China SS400 HRC are reported to have been sold to Vietnam at $860/mt CFR or slightly below, netting back to $820-830/mt FOB excluding freight.
Also, a cargo of ex-China SS400 HRC is said to have changed hands at $915-920/mt CFR Pakistan, which translates to around $870/mt FOB.
Most suppliers with interest in export sales are offering at $840-870/mt FOB for end-of-December-January shipment SS400 coils, with the lower level corresponding to traders’ offers and the higher end to mills’ offers. Even lower prices are possible, if traders decide to go short, sources have said.
But some suppliers and buyers are still cautious as talks about the possible implementation of export duty for flats in the range of 10-25 percent have resumed. “We are afraid that Beijing will announce an export tax if exports keep increasing,” a source said.
Today, November 3, local HRC prices in China have rebounded by RMB 75/mt ($12/mt) after dropping by RMB 280/mt ($44/mt) on November 1-2.