China Large Metals Firms Call for Resuming Silver Export Tax Rebate

Six leading Chinese nonferrous metals enterprises have submitted a request to the Ministry of Commerce for resuming the 17 percent export rebate for silver.

The six companies are Zhuzhou Smelter Group Co., Yunnan Copper Co., Shenzhen Zhongjin Lingnan Nonfemet Co., Henan Yuguang Gold & Lead Co., Henan Yuguang Gold and lead Co., and Shui Kou Shan Nonferrous Metals Group.

The lead smelting enterprises' major product, lead ingot, is mainly used to supply the domestic market, but their byproduct, silver, has to be sold overseas due to slight demand at home.

A company official said that since China abolished silver export rebate last year, some lead ore refining enterprises have incurred severe losses.

According to a source with Zhuzhou Smelter Group, the country's annual silver output can reach 9,000 tons, far higher than the domestic actual demand of 4,000 tons, leading to glut of silver on the domestic market.

However, without export rebate, Chinese silver products fail to have competitiveness abroad, he added.

The six enterprises suggested resuming the 17 percent export rebate rate or remitting value added tax on import.