China to Increase Import Tax on Non Alloyed Metal
China is planning to increase the import tax on non alloyed nickel to 1 percent in 2014 compared to the zero percent increase that happened in 2013 a move that financial experts say that could reduce the oversupply in the domestic market. China is considered as one of the top nickel consumer and importer of the metal that is being used in the production of stainless steel and plating industry.
Chief analyst of a State backed research firm for nickel said that the imports might fall slightly as half of the imports in China is refined nickel that has been used for financial purposes which were used by importers as collateral in short term loans. Currently the domestic nickel market has a surplus that is caused by the increase in nickel pig iron production which is a low grade ferro-nickel in China and by allowing lower imports might help ease the oversupply in the market.
China is also planning to cut the export tax on indium to 2 percent in 2014 down from 5 percent in 2013. China is also the top indium producer which is used in LCD Screens have hit a two year high in September as investors built u stocks and hoped that the market will spur more sales of the popular consumer electronics.