Singapore — China, which announced tax rebate changes last month, has resumed rebar offers to South Korea after a one-month pause, market sources told S&P Global Platts May 13.
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One main export mill in eastern China made an offer for SD400 rebar 13-25 mm at $1,045/mt CFR Korea theoretical weight, and $1,055/mt CFR for 10 mm on May 13, said a market source. The two offers were up by $350/mt, or 50%, from March, according to Platts observation.
The development comes after China decided to remove VAT rebates on exports of 146 steel products on April 28, which came into effect May 1.
Offer prices soared following sharp increase in China domestic and futures markets amid bullish sentiment.
Higher offers were hardly accepted by buyers in South Korea and no deal concluded at the time of publication, according to market sources.
The most actively traded October 2021 rebar contract on the Shanghai Futures Exchange closed at Yuan 5,915/mt($916/mt) May 13, up Yuan 1,066/mt, or 22% from the last price adjustment on March 4, with the highest price at Yuan 6,208/mt on May 11.
In the Beijing retail market, 18-25 mm diameter HRB400 rebar was assessed at Yuan 6,465/mt($1,001/mt) ex-stock actual weight on May 13, including 13% value added tax, up Yuan 1,765/mt on March 4 or 37.6%.