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H beam export market in Asia may bottom out – 26 Jul 10

TEX reported that speculation has begun to circulate that the H beam export market in Asia may bottom out shortly as the course of things is forecast to change on the occasion of negotiations to cover H beam exports for September 2010 shipments.

Recent offer prices stand at USD 610 to USD 620 per tonne CNF in China''s exports of small midsize H beams to South Korea. The offer prices are estimated at a level of USD 500 per tonne FOB. At present, though, no lower prices than USD 610 to USD 620 per tonne CNF are on offer from China to South Korea. As a result, speculation has begun to arise that Chinese steelmakers may offer increased prices in their deals of H beam exports to South Korea next time.

China''s central government revised the rates of export value added tax rebates from July 15th 2010, in which the rebates were abolished for steel mill products such as HR coils and shapes including H beams.

With the abolition of the VAT rebates, a price increase of USD 50 per tonne is on offer in some cases of HR coil exports from China to Vietnam for August to September 2010 shipments. There are no corresponding cases so far in China''s H beam exports. It is understood that no Chinese steelmakers are willing to offer H beam exports at USD 610 per tonne CNF or below for delivery in South Korea. But there are forecasts that Chinese export volumes of H beams will decrease in pricing difficulties if increased prices are on offer.

Meanwhile, there are reports that some Chinese steelmakers are considering attempting customs clearance of H beams for export as alloyed steel with the addition of boron to escape the VAT imposition.

 

Jul 26, 2010 12:05
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