Manganese producers and traders concerned about tax rebate
2005-05-16 09:39:24 【Print】
BEIJING (Asian Metal) 16 May 05 – Following China’s export tax rebate revisions, manganese producers and traders have become more concerned about future tax regulations concerning manganese exports, market source reported to Asian Metal today.
“There are rumors flying that China will remove the manganese export tax rebate, effective July 1st,” a Hunan-based trader reported to Asian Metal today. “Obviously, that might bring us difficulties for exports.”
According to the source, manganese flake export prices have slipped since Spring Festival from over USD1,600/t FOB, to USD1,410/t FOB. “If the measures take effect, the export price could stop slipping and move up,” said the source. “However, whether foreign buyers will share the extra tax cost or not is a big concern.”
Another Hunan-based smelter also heard the spreading rumor. “Other than increased electricity prices and the weakened manganese market, an export rebate removal would be another heavy burden for us,” said the source.
In view of the uncertainty of future conditions, the smelter is signing contracts warily. “Domestic suppliers are likely to refuse the contracts with delivery after July if foreign buyers refuse to pay the added tax costs,” said the source.
The smelter is operating at its full production capacity of 12,000tpy, with most of its output exported. Current concluded prices are around USD1,420/t FOB, according to the source.
