[Ferro-alloys.com] In China, albeit the lobbying activity has continued to ask for the reduction in the export duty rate on ferro-silicon (Si>55%), it becomes more likely according to the up-to-date information that the implementation from January 2014 will be put off.

 

Now, the movement to ask for the reduction in the 25% export duty on ferro-silicon has got into full swing since around March 2013, and the China Ferroalloys Industry Association and producers have deployed vigorous lobbying activities against the governmental organizations.

 

During August to September, there had been a positive status of progress in the situation, and therefore not only ferro-silicon producers in China but also the overseas customers were expecting much of its result.

 

However, the pessimistic observation began to come up in the market from around October that the reduction in the export duty won't be implemented, and in this week when the announcement of import and export tariff rates for 2014 by the Ministry of Finance is made at near hand, the information with high credibility came that the implementation of reduction in the duty rate supposed to be implemented next January will be put off. Although the final decision will be made by the announcement in mid-December, the possibility is extremely low for the duty rate to be reduced as far as the present situation goes.

 

Although most of the trading firms and customers which import ferro-silicon from China have refrained from purchasing as December shipment while having a concern over the implementation of the reduction in the duty rate, the export-oriented commodities in the Chinese domestic market becomes extremely low for December shipment. This is because the customers in the U.S. made a vigorous purchase, and most of the cargoes which can be contracted at the moment is for January shipment. However, as China has a long holiday period of Chinese New Year from January 31, some ferro-silicon producers comment the cargo which can be prepared as January shipment will be less than that of usual year.(Source: TEX Report)