07 November 2006 07:31 [Source: ICIS news]
By Chow Bee Lin
SINGAPORE (ICIS news)--China’s polymer importers have held off purchases of certain grades till December to enjoy the lower import tariffs expected to be implemented in January, local traders said on Tuesday.
Import tariffs are expected to be reduced to 7.8% for high-density PE (hdPE) and low-density PE (ldPE), and to 7.6% for polypropylene, from 9.1% and 8.6%, respectively, effective 1 January.
However, December demand for film grade hdPE and ldPE are expected to be less affected as these grades are mostly imported by export-oriented processors who are exempted from import duties and tariffs, traders said.
Import demand for linear low-density PE (lldPE) is also unlikely to be affected as next year’s tariff for this grade is expected to be unchanged at 6.5%, the traders said.
Some Asian producers thought the difference in import costs arising from the different tariffs would not be big enough to affect December demand.
"China’s import pattern is partly moulded by domestic price trend and local prices commonly fluctuate by CNY200-300/tonne in a week, so the expected difference (in import costs) is too small to have any impact," a regional supplier said.
The difference in import costs due to the different tariff rates is around CNY100/tonne.
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