China’s new value-added tax (VAT) policy, down from 16% to 13% for manufacturing, took effect today April 1, and what happened in Chinese base metals market in the first day of the rate cut?

Market response, in general, was quiet, according to SHMET survey.

No significant sell-offs were seen in the copper market, and on-warrant copper stocks remained high. A tightening SX-EW market indicated the closure of profitable import window and improving demand. Mixed offers were heard in the morning’s copper market.

In the aluminum market, trading sentiment was moderate, and the SHFE/LME aluminum price ratio is expected to decline from highs, which will incentivize exports.

On the first day of the VAT cut, suppliers of lead lowered premiums significantly from 300-400 yuan/mt to 20-60 yuan/mt, but trades remained thin as downstream demand stayed quiet.

Similar to the lead market, spot premiums for zinc also dived today, but buyers were still wary of purchases given high costs. The import window remained closed.

No big stories happened in tin and nickel markets, and overall trading was low. 有色金属展-铜材展-2019年广州国际有色金属工业（铜业）展览会 -2019 China(Guangzhou)Int’l Non-Ferrous Metal（Copper）Exhibition -Non-Ferrous Metal exhibition, 2019 Non-Ferrous Metal exhibition, Non-Ferrous Metal expo, 2019 Non-Ferrous Metal expo, Copper exhibition, Copper expo, 2019 Copper exhibition, 2019 Copper expo, China Copper exhibition, China Copper expo