| The TEX Report Topics < Ferro Alloys > | |
| HOME >> Topics List >> October, 2007 >> 31 (Wed) |
| Matter To Raise Duty On Exports Of Chinese Mn Ferro-Alloys Is Carried Over To Next Year |
| = At Meeting Held In Dalian, Raise Of Export Duty Was Said To Be Not Effective To Put Brake On Exports |
|
In line with the policy to restrain exports of Chinese ferro-alloys being enforced by the Central Government of China, the matter to raise duties on exports of ferro-alloys from China has been discussed from a previous time but the private companies concerned have surged with an opinion that a raise of the duties is not effective to put the brake on exports of Chinese ferro-alloys. Therefore, a mood to raise again within this year the duty on exports of Chinese manganese ferro-alloys has rapidly cooled down. So far there was a strong view in the market that the duty on exports of manganese ferro-alloys from China was supposed to be probably raised from November, but at the meeting held in last week at Dalian between executives of China Ferro-Alloy Producers Association and high officers of Chinese Government, a tone of this matter at Governmental side seems to have changed as mentioned above. In order to restrain exports of Chinese manganese ferro-alloys, the Central Government of China has already enforced various countermeasures for this problem and one of powerful trumps is to raise the duty on exports of manganese ferro-alloys from China. As a matter of fact, the duty on exports of manganese ferro-alloys from China has been raised from 5% at a previous time to 10% at present, effective from November of 2006. However, in June of 2007 when the duties on exports of such Chinese ferro-alloys as ferro-silicon and ferro-chrome have been raised, the matter to raise the duty on exports of manganese ferro-alloys has been held back and has adopted an attitude to watch carefully about further movements of the exports. The reason is that Chinese producers of ferro-alloys have promised to endeavor to restrain exports of manganese ferro-alloys and a time to raise the export duty has been postponed. Nevertheless, even after that, the exports of manganese ferro-alloys from China have been increasing. The quantities of manganese ferro-alloys exported from China in January - August of 2007 had decreased by 1% for high carbon ferro-manganese but increased by 66% for silico-manganese and also increased by 40% for medium and low carbon ferro-manganese in comparison with those in the same period of 2006. Accordingly, there was a strong opinion in the market that the duty to be imposed on exports of manganese ferro-alloys from China was thought to raise by 5 - 10%, including a portion held back in June to raise, and to add this raise to the duty at present ( 10% ). At the Dalian meeting, China Ferro-alloy Producers Association advised their opinion that the matters to weed out medium and small producers and to rise electric power fees to a large extent will connect with the countermeasures to restrain exports of Chinese ferro-alloys. Under the present situation which transactions on ferro-alloys have become a sellers' market, an increase of cost caused by a raise of the export duties has been settled by means of charging it on buyers' account. It was said that the officers concerned in Chinese Government have understood the situation as mentioned above. Under the circumstances, there is a big probability that the materialization to raise the duty on exports of manganese ferro-alloys from China will be carried over again to the next year of 2008. However, the demand for manganese ferro-alloys from domestic market of China has been kept on an active tone and, at a tender to purchase silico-manganese held by a steel company of China, the lowest price bidden was CNY9,500 per ton ( corresponding to US$1,270 ) as a higher level. This domestic price of Chinese silico-manganese comes to US$1,400 per ton FOB China and the price of silico-manganese offered from China in the beginning of last week has risen by US$50 per ton. The latest price of Chinese silico-manganese purchased by Japanese trading companies has risen up to US$1,450 per ton CIF Japan. The negotiations with Chinese suppliers on price of silico-manganese have been taken place mainly on shipments in November - December to secure cargoes due to arrive in Japan during the end of this year to the beginning of next year. It is very hard to arrange ocean freight for shipments from Huanan area, including Zhanjiang port, and it is also difficult to secure vessels for shipment from Tianjin port. Consequently, the ocean freight for shipments from these Chinese ports to Japan has raised up to a nearer level to US$35 - 40 per ton. |
| last modified : Mon 05 Nov, 2007 [14:09] |
