China to cancel aluminum import duty and impose 15% export tariff on aluminum products in August
2007-07-19 18:43:48 【Print】
BEIJING (Asian Metal) 19 Jul 07 - China's Ministry of Finance reported on Thursday that China will cut import duty on aluminum (H.S code: 76011090) from 5% to 0% and will envy 15% export tariff on aluminum rod and bar (H.S code: ex76041000), effective Aug 1st, 2007.
China just removed the export rebate on some aluminum products including aluminum rods and bar, taking effect from July 1, 2007. It raised aluminum export tariff from 5% from 15% in November 2006.
The serial policy adjustments show that the government aims to strengthen controls on exports of energy-intensive products and natural resources and encourage the import of raw materials.
Market sources reported that the recent significant adjustments will cool down the overheated export market of aluminum products and exert great pressure on Chinese aluminum market in the second half of 2007.
A Shandong-based aluminum products producer with the monthly output of about 10,000tpy reported that since Chinese government canceled the export rebate on aluminum rod from July 1st, the company has suspended the export business of the material and increased the production of aluminum tube and plate, on which there are still 11% export rebate.
The source said that if the export tariff on aluminum rods and bars is as high as 15%, the export of the material will decline dramatically in the future. “Chinese aluminum products producers’ offers are competitive in the overseas market in the past, as they could get high export rebate,” said the source. “However, after the export rebate was canceled this month and the export tariff increases to 15% next month, Chinese producers will lose the advantage in the future.”
The source noted that the removal of export rebate on some aluminum products has dampened Chinese aluminum ingot market this month, with spot aluminum price dipping continuously to about RMB19,850-19,900/t (USD2,622-2,629/t) this week. The source predicted that spot aluminum price may continue to drop in Chinese market in the second half of 2007, as the demand may decline significantly, caused by the potential great decrease in the aluminum products export. In addition, the removal of aluminum import duty will drive up the import increase in the future, pushing down domestic aluminum market.
