Chinese participants diverge on the complementary indium export quota policy
2007-10-30 13:38:48 【Print】
BEIJING (Asian Metal) 30 Oct 07 – Chinese government issued complementary standards and procedures for indium export license application last Friday, which is specific policy for newly-built smelters, who put into production not less than one year and not more than three years. Some participants believe the new policy will bring positive effects to the market, but some think otherwise.
“The complementary policy will allow more smelters to have the export licenses, which will increase indium supply and press the price to go down further,” said a smelter, whose annual output is above 10t.
The source expressed that the policies on the indium export are obscure and did not bring positive effects to the indium market. “The export quota imposition in the first half of this year did not push the price to go up, and the State Reserve Bureau has not started to the reserve yet, although the rumor was spread early this year.”
The State Reserve Bureau should build the indium strategic reserves and that the government should crack down on rampant smuggling, which may eventually bring the indium price to go up, the source appealed.
A trader, however, holds favorable views towards the newly-announced policy. “The policy will allow more smelters to have the right to export indium, so the smuggling of indium will reduce to some extent,” said the source.
The previous export quota policy prevents many smelters from exporting the material, but it is impossible for these unqualified smelters to transfer to other businesses in a short time. Therefore, some smelters resort to export the material by hiding it among zinc ingots or sending the shipments to nearby Vietnam before redirecting the destinations such as Hong Kong.
If more smelters have the right to get the export quota, the smuggled indium volume will decline and its low price will disappear soon, which is helpful to the market.
However, participants believe that the market is finally decided by the supply and the demand. If demand continues to remain slow in the spot market, the policy will exert little impact on the market.
“The complementary policy will allow more smelters to have the export licenses, which will increase indium supply and press the price to go down further,” said a smelter, whose annual output is above 10t.
The source expressed that the policies on the indium export are obscure and did not bring positive effects to the indium market. “The export quota imposition in the first half of this year did not push the price to go up, and the State Reserve Bureau has not started to the reserve yet, although the rumor was spread early this year.”
The State Reserve Bureau should build the indium strategic reserves and that the government should crack down on rampant smuggling, which may eventually bring the indium price to go up, the source appealed.
A trader, however, holds favorable views towards the newly-announced policy. “The policy will allow more smelters to have the right to export indium, so the smuggling of indium will reduce to some extent,” said the source.
The previous export quota policy prevents many smelters from exporting the material, but it is impossible for these unqualified smelters to transfer to other businesses in a short time. Therefore, some smelters resort to export the material by hiding it among zinc ingots or sending the shipments to nearby Vietnam before redirecting the destinations such as Hong Kong.
If more smelters have the right to get the export quota, the smuggled indium volume will decline and its low price will disappear soon, which is helpful to the market.
However, participants believe that the market is finally decided by the supply and the demand. If demand continues to remain slow in the spot market, the policy will exert little impact on the market.
