A change in China's tax rebates for several steel products brought trade to a halt in the South American coil import market, while prices continued to rise.
China's announcement of a cut in existing tax rebates on several steel products brought an already slow import market to a stop.
The
cut in rebates will affect flat steel products classified under Harmonized System codes 7209, 7210, 7225, 7226, 7302 and 7304, including cold-rolled coil, hot-dipped galvanized coil, galvalume and tinplate, Fastmarkets has learned. The changes come into effect on August 1.
A large portion of deals closed for September shipment had the condition that buyers would pay for costs of an eventual change in the tax rebate regime. Market participants do not expect pressure for cancellations, as the change was already expected and known.
But buyers, traders, and sellers remained out of the market since the announcement, waiting...