China canceled 13% discount on export duty on cold rolled steel and coated steel from 1 August. Imported steel prices in Europe, the Middle East and Africa are projected to rise.
Europe and the Middle East must rely on imports due to lack of self-sufficiency in cold rolled steel and coated steel products. Without cheap Chinese goods, regional price increases would be inevitable.
Due to anti-dumping duties, China has exported very little cold rolled and coated steel to the EU in recent years. However, these products compete in the international market. Market participants said the import price would be raised in September as China canceled the tax rebate.
More attention should be paid to the plan to cut steel production in China in the second half of the year, which will also lead to an increase in world prices for steel products. Quotes for metal rolling from South Korea and Japan to Europe will surely rise.