China's domestic hot-rolled coil market softened on Tuesday March 16 while export prices increased amid heightened concerns over an export tax rebate cut in the country.
Domestic
Eastern China (Shanghai): 4,950-4,970 yuan ($761-765) per tonne, down 20 yuan per tonne
Many market participants told Fastmarkets that they had been hearing about a possible lowering of the HRC export tax rebate earlier in the day.
This sparked concerns over increased supply in the domestic market, which would dampen prices.
A Shanghai-based trader said sellers in the city's spot market lowered their offers in response, but trading activity remained weaker than on Monday, with many buyers expecting prices to fall further if the rebate cut becomes reality.
While market participants had been speculating about the possibility of...