SHANGHAI, Dec. 19 (CBI China) -- On 8th, the Ministry of Finance announced the tariff implementation plan 2009, 78,011,000 unwrought refined lead maintain export tariffs of 10%, out of the previous market expectations that the export tariffs will be eliminated, part of the producers who plan to resume exports felt surprised, most insiders delivered a neutral understanding.
On the one hand, the domestic lead prices were pull up due to the rumor of export tariff adjustments by the end of November and increased by RMB 1700/mt in two days in mid-December, as a result, the positive news was absorbed in advance, furthermore the enthusiasm of the downstream purchase was hurt. After the news was confirmed, the lead prices will be in the state of stabilization, and the competition between the suppliers and the buyers intensified which eased the situation of pricing decline.
On the other hand, since the export tariffs were added on June 1, 2007, there are fewer producers who conduct export activities. Meanwhile, the foreign lead consumption was weaker than domestic, 55% of producers were doubt about the previous rumors, so few producers made preparations for export activities. At present, as news was confirmed, it is reasonable that the market reactions are out of expectations.
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