It was reported that some of China’s steel pipe manufacturers have decided to impose a 13% value-added tax (VAT) on steel exports from August, in response to the previous cancellation policy of export tax rebates on cold-rolled coils (CRC), galvanized coils, electrical steel, and steel pipes. Therefore, both buyers and sellers will have negotiations on new pricing.

Moreover, products sold three months ago and those with shipment delayed to August due to transportation problems may also be imposed VAT.

Some pipe makers have raised their quotations before the announcement of the policy, while most suppliers are still on a wait-and-see mode, said traders.