Cracks Appear in China Smuggling Crackdown on Manganese Flake

Recent attempts by China to crackdown on smuggled Manganese Flake via Vietnam are reported to be facing problems.

China is the world's dominant producer of Manganese Flake and for most of 2011 exports have been routed via Vietnam to avoid the 20% export duty.

Market commentators have reported that the authorities are struggling to police a border nearly a thousand miles long when the incentive to smuggle and avoid duty is so high. Indded, the volume of smuggled material is so large that it is setting the market price, making it all but impossible for legal exports to compete in the international market.

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