Tax on aluminium alloy slashes export

Lots of exporters unforged aluminium alloy cancelled export of the products after imposing of tariff. And analysts say export will slash in September.   

Cut of aluminium alloy export will effectively increase domestic supply; while Asia market is likely to suffer oversupply which lead to mountain of aluminium price in LME. 

Therefore, purchasers in Asia will turn to primary metals and likely to boost primary aluminium premium as China is the largest aluminium producer and consumer in the world.

According to economic analyst of RBS, ¡°Beijing authority tries to restrain export of energy-intensive products by imposing tariff as it is committed to improve efficiency and control expansion of energy-intensive products.¡±

¡°Therefore, development of this industry in the coming five years will become much slower compare with previous ones.¡±

Financial Department declared last Friday that 15 pct would be levied on export of unforged aluminium alloy products, namely aluminium alloy products produced with local primary materials.

However, export of processed materials supplied by clients is not involved, which reaches 20,000-30,000 tons per month.

Unforged aluminium alloy are mainly scrap material, and the Beijing authority encourages production with recycled materials.

However, primary aluminium has been adopted this year as insufficient supply of scrap aluminium in the country and soar of aluminium price in the world. 

Export of aluminium alloy in June surged 430% to 113,908T.

Smelters will cut aluminium alloy output and increase primary aluminium output when export tax of aluminium alloy reaches the same level of primary aluminium.

It is predicted that with the decreasing of aluminium alloy, supply of primary aluminium in the country will increase 50,000T aboce per month.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.