CHINA DELIVERED AN early and unwanted Christmas present to traders and consumers of Chinese magnesite and magnesia in mid-December: the news that prices are set to rise significantly. Rumour and speculation followed the weekend of 9-1 0 December, when it was understood that the four main magnesite producers of Liaoning province (Xiyang Group, Houying Group, Haicheng Huayu, and Jiachen Group) had met, and, apparently supported by the Haicheng Municipal Government, agreed on a 10 US dollars/tonne price rise for dead burned magnesia grades. On top of this, it was widely expected that the central government would levy a new export tax of 10 percent on magnesite and magnesia grades effective 1 January 2007. This move was perhaps expected to arise at some stage during 2007 in light of the government's announcement of export taxes on certain minerals in November 2006 (see IM December '06, p.6). However, it is surprising to have come so early.
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