SHANGHAI, Aug 6 (SMM) – China exported 81,000 mt of silicon metal in May, up 24.6% from a month ago as low inventories pushed international consumers to restock. The figure was 28.6% higher from the same period in 2017.
This brought the total exports for the first five months of this year to 342,000 mt, up 8.7% from a year earlier, data from China Customs showed.
In May, traders managed to ship their April orders that were delayed by additional documents required for customs declaration. In late April, some local customs brokers at Huangpu port, a major port for silicon metal exports, asked traders to provide documents including value-added tax (VAT) invoices and historical prices.
Export volumes in June are likely to fall as international buyers were cautious in procurement given the supply growth in China. However, we expect exports in July to increase as traders brought forward the customs declaration of their early August orders on worries over stricter rules on imports and exports.
At the end of June, China Customs released new changes in declaration of cargoes both entering and exiting the country. More stringent documentation and more specific information are required under the new rule.
The new rule took effect from August 1, 2018.
Things like using other companies’ export documents or discrepancies among various documents are expected to be reduced.