Domestic and export steel prices in China have soared in recent weeks
amid speculation about a possible reduction in the 13% rebate for steel product exports to 9% or 4% - or even its complete removal.
A reduced rebate would make exports less profitable and Chinese mills will look to claw back the loss of rebate in their export sales prices, sources said.
Fastmarkets' domestic price assessment for Chinese rebar jumped to a 12-year high on Tuesday
, amid strong prospects for demand in the months ahead.
And adding to the cocktail of price increases for import billet is the fact that the availability of domestic billet remains constrained in the key steelmaking hub of Tangshan in China’s northeast, where there are currently restrictions on blast furnace output, sources said.
Deal prices rise
Sales for 150mm 3sp square billet into China were closed last week at $620 per...