On November 15th 2024, The Chinese Ministry of Finance issued the Announcement on the Adjustment of the Export Tax Refund Policy. The announcement will come into effect on December 1, 2024. Total 24 categories of aluminum codes were cancelled tax refund at this time. Almost covers all domestic aluminum profiles, aluminum strip foil, aluminum strip rod and other aluminum products.
London Metal Exchange (LME) aluminum futures rose 8.5% on Last Friday. Because the market expects large quantities of Chinese aluminum to be restricted to export to other countries.
Market participants expect China’s aluminum export volume to decline after the cancellation of export tax refund. As a result, the overseas aluminum supply is tight, and the global aluminum market will have major changes. Countries that have long relied on China will have to look for alternative supplies, and they will also face the problem of limited capacity outside China.
China is the world’s largest aluminum producer. About 40 million tons of aluminum production in 2023. Accounting for more than 50% of the global total production. The global aluminum market is expected to return to the deficit in 2026.
Cancellation of aluminum tax refun could trigger a series of knock-on effects. Including rising raw material costs and changes in global trade dynamics, industries such as the automotive, construction and packaging industries will also be affected.
Post time: Nov-19-2024