Demand for August-shipment material was steady, and close to levels seen in previous months, according to market participants. But clients were still uneasy due to the possibility of tax changes in China.
Most sources were expecting the tax rebate for cold-rolled and hot-dipped galvanized coils to be reduced to 4-9% from 13%, or even removed altogether. There was also talk of an export tax being introduced for hot-rolled coil, heavy plate and pre-painted steel, they said.
“Customers in South America are mostly expected to conclude their August-shipment deals either within this week or the next, [but the already] high and rising freight rates are big headaches for mills and traders,” a non-Chinese mill source said.
“Demand remains firm in the region, but prices are too volatile at...