VAT cut improves sentiment in China’s export market

The price of silicon in China’s export market was steady in the week ended Friday March 8, with increased spot activity and an upcoming cut to the rate of value-added tax (VAT) paid by Chinese manufacturers of metals and minerals said to have bolstered market sentiment.

• Sentiment improves in China’s export market, prices steady
• European grade 553 silicon price ticks up, grade 441 equivalent flat
• US market slips on weak demand, ample supply

Speaking at the opening session of the National People’s Congress in Beijing on March 5, China’s Premier Li Keqiang announced plans to cut the VAT rate that covers the manufacturing sector to 13% from 16% as part of efforts to support the country’s slowing economy.With the upcoming reduction of value-added tax from 16% to 13% in China also helps to support market sentiment.