China's domestic hot-rolled coil prices experienced a strong rebound on Monday March 18 with buyers making a rush for materials ahead of a reduction in the country's value-added tax on April 1.
DomesticEastern China (Shanghai): 3,860-3,870 yuan ($575-576) per tonne, up 60-70 yuan per tonneNorthern China (Tianjin): 3,810-3,830 yuan per tonne, up 60 yuan per tonneTrading activity was robust in both Shanghai and Tianjin, with downstream end users looking to capitalize on the new VAT rates by stocking up on materials that incur the existing 16% rate.By doing so, they hope to improve their margins...