Aluminium export taxes refund canceled in China

In recent years, the rise of China, has become the world’s leading producer of aluminum products downstream. However, as China’s aluminum upstream manufacturers urged the government to cancel the original export tax, make the downstream aluminum products manufacturer in a vulnerable position. The proposal seems good for smelters, but it will no doubt be pounded China high-end aluminum products manufacturer.

Madras Consultancy Group, the Metal Bulletin several months ago in the 29th international aluminum industry summit in ABU dhabi, said: “China’s manufacturing technology improvement is threatening to North America and the eu in the downstream of the aluminium trade status.” He added: “China is rising as the product category – aluminium rolling products, aluminum foil and leading producer of downstream products.”

In fact, since 2013 the Chinese government introduced the policy, promote the development of processing industry and strengthen the value-added products export, China’s downstream producers in the global market competitiveness has improved significantly. Advanced and mature aluminum product versatility, can be used to more efficient vehicles to the green building, so that more durable packaging and modern electronic products. The demand in the long run, these projects are bound to rise, automobile and building industry will push up global growth.

Over the past few years, China’s mill products industry to attract a large number of investment, the production capacity by 5 million tons to 12 million tons this year, 2010. Will launch more projects. Famous CRU analysis company, points out that between 2014 and 2018, China’s aluminium capacity will be an extra 5 million tons of rolled products. Aluminum rolling products exports over the past five years has risen more than doubled.

Until now, the Chinese government has been strongly supported the development of the downstream aluminum industry. It is not hard to understand, after all, China’s energy cost is high, it is impossible to export aluminium products of high energy consumption. At present, China to the original aluminum ingots 15% of export tariffs. Mature downstream products have a full refund, however, provide strong incentive for downstream producers.

Main global aluminum company Alcoa, Aleris, Novelis also aware of China’s huge potential, in the domestic factory and capacity expansion, and introduce the most advanced technology around the world. To date, China has a good chance to further strengthen position in the whole world, the car plate and aerospace products and other high-end industry.

However, yunnan China international aluminum in the BBS, held November part of China’s aluminium producers urged the government to abolish all aluminium export taxes, or cancel parts of aluminum billet and aluminum wire rod export tax. Authorities believe that the move will lead to the aluminium in the form of aluminum ingots, aluminum billet and aluminium wire rod from China out of the world market, serious damage to the downstream industry. Therefore, domestic aluminium prices will rise sharply, to its downstream producers losing competitiveness in the international market. In the worst case is aluminum and aluminum rolled products industry will shrink, the new project was canceled, downstream company suffer losses, making it difficult to repay bank loans.