Tax ru­mour dogs zinc mar­ket

The Weekend Australian - Travel - - Resources -

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

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