Lead adjusts to new reality

摘要

Allied to its earlier reduction in VAT rebate, the Chinese government's imposition of an export tax on exports of refined lead has shaken the market with a vengeance. Chinese lead smelters' re-evaluation of their finances in the face of this new fiscal regime has prompted them to insist that the long-standing status quo of spot TCs as low as 40-60 dollars/t (flat) for clean, low-silver, lead concentrates has to end. The market in China quietened during the last couple of months and spot TCs lifted to over 100 dollars/t (flat) in May and June. This rise has since accelerated.