GAC's Reduction of Minimum Export Prices Still Affects Electrolytic Manganese

SHANGHAI, Jul.27 (CBI China) --: The General Administration of Customs (GAC) set the minimum electrolytic manganese export price between USD 4,650 - 5,000/mt on 1 July 2007, in order to control heated export growth and minimize tax evasion by exporters.  In mid-July, the minimum export price was  reduced by the GAC to USD 3,700/mt.

    Just as what CBI predicted two weeks ago, GAC lowered the minimum export prices below USD 4,000/mt, and exporters who settled prices around USD 4,000/mt are presently allowed to fulfill contracts.  However, the market levels have already retreated to USD 3,000/mt, and the mandated minimum level of USD 3,700/mt should still have a negative impact on electrolytic manganese exports.  Domestic exporters and overseas buyers are adopting a wait-and-see attitude.