Customs Regulations Drive Up Chinese Wire Rod Export Prices
[tintuc]
Export prices for Chinese wire rod have been trending upwards this week, even as export transactions remain sluggish.
Major wire rod exporters in Northeast China have kept their export prices steady at $530/ton FOB China this week, but very few deals have been concluded. A trader mentioned that there were no additional discounts from mills this week. Another trader stated, "Market sentiment has recovered in July, so mills want to maintain stable prices."
Meanwhile, prices for non-alloy wire rods from China have risen slightly, particularly amid rumors of customs inspections causing market anxiety. Market sources reported that wire rods produced by small mills in Hebei province were traded at $510/ton CFR Manila early this week, but by Thursday, these offers had increased by $5-10/ton. The reason for this is the rumored detention of hundreds of thousands of tons of steel products at customs due to unpaid VAT. However, these rumors have not been confirmed.
Chinese steel exports have reached historical highs this year amid domestic oversupply. In this context, some exporters have been evading full payment of value-added tax (VAT) or export duties to lower their export selling prices and boost volumes. This has led to an increase in steel imports from China to neighboring countries, triggering trade protection measures in some nations and complaints from target markets. Customs inspections may restrict the export of these cheap resources, thereby driving up the export prices of Chinese steel products.
Export prices for Chinese wire rod have been trending upwards this week, even as export transactions remain sluggish.
Major wire rod exporters in Northeast China have kept their export prices steady at $530/ton FOB China this week, but very few deals have been concluded. A trader mentioned that there were no additional discounts from mills this week. Another trader stated, "Market sentiment has recovered in July, so mills want to maintain stable prices."
Meanwhile, prices for non-alloy wire rods from China have risen slightly, particularly amid rumors of customs inspections causing market anxiety. Market sources reported that wire rods produced by small mills in Hebei province were traded at $510/ton CFR Manila early this week, but by Thursday, these offers had increased by $5-10/ton. The reason for this is the rumored detention of hundreds of thousands of tons of steel products at customs due to unpaid VAT. However, these rumors have not been confirmed.
Chinese steel exports have reached historical highs this year amid domestic oversupply. In this context, some exporters have been evading full payment of value-added tax (VAT) or export duties to lower their export selling prices and boost volumes. This has led to an increase in steel imports from China to neighboring countries, triggering trade protection measures in some nations and complaints from target markets. Customs inspections may restrict the export of these cheap resources, thereby driving up the export prices of Chinese steel products.
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