CHINA HRC: Buyers opt out ahead of VAT cut, but futures gains prevent spot price drops

The last day of trading with a 16% value-added tax (VAT) resulted in sparse activity in the spot market on Friday March 29, although stronger futures meant that hot-rolled coil prices ended the day flat.

Domestic Eastern China (Shanghai): 3,850-3,860 yuan ($571-573) per tonne, unchanged Northern China (Tianjin): 3,790-3,800 yuan per tonne, unchanged China will cut the VAT rate to 13% from the current 16% on April 1. As a result, March 28 marks the last day of deals made at a 16% VAT rate. Most traders have stopped selling HRC with 16% VAT as they wait for the new rate to come into effect next Monday. Still, some traders lowered their offers on Friday to 3,820-3,830 yuan per tonne including 13% VAT in Shanghai, but failed...

Published

Jessica Zong

March 29, 2019

09:50 GMT

Shanghai