China to Cancel Export Tax Rebate on Zinc Ingots This Year
By Interfax-China
04 Apr 2007 at 08:55 AM GMT-04:00
resourceinvestor.com
SHANGHAI (Interfax-China) -- China will cancel the export tax rebate on 0#zinc ingots, grade >99.99%, this year, a China Nonferrous Metals Industry Association official, surnamed Zhao, said at the Zinc Futures Introduction for the Shanghai Futures Exchange (SHFE) last Saturday.
Since September 2006, the tax on zinc exports has been set at 5% and the zinc export tax rebate has been canceled for grade <99.99% 1#zinc ingots.
China is a net importer of refined zinc, and last year China has net imports totaling 191,000 tonnes in 2006, down 59.7% from the previous year.
0#zinc ingots are mainly used in steel mills for galvanized steel sheet production.
Yesterday, several analysts reported that zinc prices may decline after a peak in early 2007, due to increasing supply.
China's zinc output may rise by 400,000-500,000 metric tonnes this year to around 3.55-3.7 million metric tonnes.
However, China's apparent zinc consumption is set to grow to 3.65 million metric tonnes from last year's 3.39 metric tonnes.
Global zinc output increased 4.2% in 2006 and is predicted to increase an additional 5% this year, according to figures released by the International Lead & Zinc Study Group (ILZSG).
Zinc Futures closed higher after overnight gains on the London Metals Exchange. The July delivery rose RMB175 ($22.62) to RMB 28,985 ($3,747.30) on the Shanghai Futures exchange.
"The market is similar to aluminum market, as it is currently under supply pressure and the possibility that China might cancel tax rebates for zinc products exports weighs on market sentiment," said analyst Lu.
© Interfax-China 2007.
This article comes from Interfax China Commodities Daily, a daily digest produced by Interfax News Agency in Mainland China. To receive 10 free copies of this, please e-mail david.harman@interfax-news.com. |
