Lead gets lift from China production shutdown

Dec 20, 2007 | 08:29 AM | Meghann McDonell

Lead regained ground on the London Metal Exchange Wednesday and Thursday following news that several companies in Shadian, Yunnan province, had ceased production because of a tax dispute.

Three-month lead ended the official session Thursday at $2,640 a tonne ($1.20 a pound), up from $2,526 at Wednesday's final kerb close and $2,420 at Tuesday's wind-up.

Lead production was halted at several companies in Shadian after the government abolished a policy that had reduced their value-added tax (VAT) to 6.6 percent from 17 percent. Without the preferential rate, lead producers' costs have increased significantly, according to analysts.....

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