[Ferro-Alloys.com] Chinese steelmakers were not keen to chase export business last week, due to hot domestic sales and the uncertainties still hanging about whether the steel export tax rebates would be cut, industry sources said.
"Export trading has been very slack recently. All players are waiting for a definite decision on the tax rebate cuts," an industry source based in Beijing observed. The price disparity between the overseas and domestic markets has been widening, he acknowledged.
As of April 2, average price of SS400 HRC sold to the ASEAN region was $845/tonne CFR, while on the same day, the Q235B HRC price in Shanghai was Yuan 5,520/t ($842.7/t) including the 13% VAT.
Therefore, the price disparity reached Yuan 748/t (based on CFR price*exchange rate + tariff + VAT Vs China's domestic price), up Yuan 123/t on week, some institutions calculated.