Impact on Zinc Market from China's Elimination of Export Rebates-Shanghai Metals Market

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Impact on Zinc Market from China's Elimination of Export Rebates

SMM Insight 01:05:50PM Jun 28, 2010 Source:SMM

SHANGHAI, June 28 (SMM) -- China's State Council has approved the elimination of export tax rebates on 406 products, effective July 15th, for the detailed zinc products listed below:

HS Code
Commodity Name
Original Export Rebate Rates
Latest Export Rebate Rates
7407210000
Copper-zinc alloy (brass) bars, rods, profiles, and extrusions
5%
0
7408210000
Copper-zinc alloy (brass) wire, copper-nickel alloy (cupronickel) wire or copper-nickel-zinc alloy (nickel silver) wire
5%
0
7408220000
Copper-nickel alloy or copper-nickel-zinc alloy pipe and tube fittings
5%
0
7412201000
Zinc and zinc alloy bars, rods, profiles, and wire
5%
0
7904000000
Zinc plate, sheet, strip, and zinc foil
5%
0
7905000000
Zinc tube and pipe fittings (for example, couplings, elbows, sleeves)
5%
0
7907002000
Cell-packing blanks (zinc biscuits)
5%
0
7907003000
Other zinc products
5%
0

Export tax rebates have been lowered from 5% to zero for zinc alloy bars, zinc rods, zinc profiles, zinc plates, zinc sheets, zinc strips, zinc foils, zinc pipes, zinc tube fittings, cell-packing blanks (zinc biscuits), and other zinc products for non-industrial use.

China's exports of zinc-related products as a proportion of total domestic consumption are relatively low. China's export markets were heavily affected by the global financial crisis which began in late 2008.  Although exports of zinc products have been recovering gradually since 2H 2009, the growth rate is still slow.  In this context, the elimination of export tax rebates will have a very limited impact on exports.

Producers of some zinc products affected by the export rebate adjustment have signed orders for delivery after July 15th, so the removal of export rebates on these products will likely push up zinc prices in the short term.  However, possible decline in export volumes of zinc products will exert a negative impact on China’s domestic zinc market in the medium and long term.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

Impact on Zinc Market from China's Elimination of Export Rebates

SMM Insight 01:05:50PM Jun 28, 2010 Source:SMM

SHANGHAI, June 28 (SMM) -- China's State Council has approved the elimination of export tax rebates on 406 products, effective July 15th, for the detailed zinc products listed below:

HS Code
Commodity Name
Original Export Rebate Rates
Latest Export Rebate Rates
7407210000
Copper-zinc alloy (brass) bars, rods, profiles, and extrusions
5%
0
7408210000
Copper-zinc alloy (brass) wire, copper-nickel alloy (cupronickel) wire or copper-nickel-zinc alloy (nickel silver) wire
5%
0
7408220000
Copper-nickel alloy or copper-nickel-zinc alloy pipe and tube fittings
5%
0
7412201000
Zinc and zinc alloy bars, rods, profiles, and wire
5%
0
7904000000
Zinc plate, sheet, strip, and zinc foil
5%
0
7905000000
Zinc tube and pipe fittings (for example, couplings, elbows, sleeves)
5%
0
7907002000
Cell-packing blanks (zinc biscuits)
5%
0
7907003000
Other zinc products
5%
0

Export tax rebates have been lowered from 5% to zero for zinc alloy bars, zinc rods, zinc profiles, zinc plates, zinc sheets, zinc strips, zinc foils, zinc pipes, zinc tube fittings, cell-packing blanks (zinc biscuits), and other zinc products for non-industrial use.

China's exports of zinc-related products as a proportion of total domestic consumption are relatively low. China's export markets were heavily affected by the global financial crisis which began in late 2008.  Although exports of zinc products have been recovering gradually since 2H 2009, the growth rate is still slow.  In this context, the elimination of export tax rebates will have a very limited impact on exports.

Producers of some zinc products affected by the export rebate adjustment have signed orders for delivery after July 15th, so the removal of export rebates on these products will likely push up zinc prices in the short term.  However, possible decline in export volumes of zinc products will exert a negative impact on China’s domestic zinc market in the medium and long term.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn