China to cancel manganese export tax rebate
Reports from
China's Ministry of Commerce disclose that Beijing will cancel the 13% export tax rebate applied on un-processed manganese and
scrap manganese with tax code 81110010 will be cancelled as of August 1 2005.
Manganese is widely used for
stainless steel
production especially and the
stainless market of the country expected to be affected from the cancellation. A possible affect of the cancellation may lead to a decrease in the exports of manganese and more supply in the domestic market.
The government took the decision to support the
stainless industry which has been suffering from low
stainless prices and high manganese prices. The government may later bring an export tax on manganese unless the reduction in exports and supplies in the domestic market are not considered satisfactory.
According to the reports, export taxe rebates on aluminium and some other non-ferrous metals will also be cancelled as of August 1.