As Chinese New Year holidays drew to a close this week, the key item for the market to address will be the export of cheap Chinese billets. Pakistani end buyers are lobbying to impose a massive 40% duty to curtail the imports that continue to kill domestic prices.
There are negligible duties on the steel in Pakistan and India currently and all sub continent locations are pressing hard to raise further taxes and prevent the inventories on their yards from being considerably undercut.
The aggre ssive scrapping policies adopted by the major state Chinese owners is set to continue this year with the government subsidies still in place until the end of 2015 meaning China’s recycling yards can expect to be busy throughout this new year of the sheep.
Source: steel guru. 10 March 2015