On January 1, 2013, China cancelled provisional export tariffs on industrial raw materials such as magnesium metal ,silicon metal, electrolytic manganese and coke officially . Ferro-Alloys.Com reporters interviewed many companies exclusively on how much tariff cancellation influenced export market recently.
Most enterprises reported, judging from market reaction during the recent three months, tariff cancellation did not significantly stimulate export market which was going down. As for specific products, compared to India, South Korea, and Japan,coke is still not much competitive even tariff has been cancelled, the price of which is still higher than other countries; Magnesium metal market mainly suffers from shortage of demand overseas, besides that some enterprises export magnesium metal by evading VAT, which lowers down export prices obviously and simulates foreign traders to bargain more.
A great many magnesium metal exporters reported that they were unable to accept orders because the profit was so slim. Common export business could not carry out if illegal enterprises evading VAT are not cleared up properly.
Silicon metal market is faced with the same problem, besides the pressure of upward cost,because wet season has not come yet and electricity price is still high.
As for future export market, demand is still the determining element while macro economy, industry policy and tariff will continue to play the role of regulation and promote export market development in a more healthy and orderly direction.