Tax rumour dogs zinc market
NET exports of refined zinc from China, the world’s biggest producer, rose in 2007 as domestic output gained, making local prices more appealing to overseas buyers. Lead exports halved to at least a three-year low.
Net refined zinc exports gained to 126,159 tonnes in 2007 from 7000 tonnes the previous year, according to Bloomberg calculations. Exports were 275,649 tonnes in 2007 and imports 149,490 tonnes, the Customs office says, citing revised data.
Exports of refined lead fell by 56 per cent to 235,758 tonnes last year, the Beijing-based office said — the lowest in at least three years according to Feng Juncong, an analyst at Beijing Antaike Information Development.
Government tax changes and the appre- ciation of the yuan may make it more difficult for local lead and zinc producers to export this year, Feng said by phone from Beijing. ‘‘ Falling exports and rising imports, that may be the trend for both metals this year.’’
The possibility that China may tax special high-grade zinc exports is the biggest factor causing uncertainty in the global market for the metal this year, says Claire Hassall, principal of CHR Metals.
Chinese ‘‘ export taxes threaten disruption in global markets for refined zinc and zinc concentrates,’’ she says. The country currently doesn’t tax exports of special highgrade zinc, or metal with a minimum purity of 99.995 per cent. Bloomberg