Demand for Chinese CRC and HDG has been poor in the week to Tuesday October 12, with buyers shifting their attention to cheaper resources from other origins
and overall demand weak due to Covid-19 pandemic situations across the globe.
“Profit margins for exports of [Chinese CRC and HDG] have been thinned out following the removal of [value-added] tax rebates
on August 1,” a Tianjin-based trader said. “The current profit margins are not wide enough to prompt mills to take the risk of a longer period to receive payment, while power cuts and production curbs
have reduced their supplies
Long waiting times for cargo deliveries, meanwhile, dented buying interest among importers, with the price spreads between imports and local resources not big enough.
For buyers in South America, their cargoes would be expected to take about four months to arrive after leaving...