A significant development this week was the reorganization of exports by Guangdong customs following the high tax refund event. New requirements mandated raw materials suppliers to provide invoices, indicating formal company operations and tax payments. Additionally, farming bases were required to have farming certificates, failing which the raw materials could only be sold in the domestic market. Over 100 farming bases lacked these certificates, creating a sense of uncertainty. The government’s requirements led to a reduction of RMB 0.2/kg in raw materials prices in Guangdong due to market panic. Several factories reported increased enquiries from the Mexican market, indicating a shift in trade dynamics.
