Tax adjustment of exports of aluminum products increased pressure - Sep, 4, 2008

Aluminum exports of the Ministry of Finance introduced the latest rate adjustment policies, under the general trade export of primary aluminum and aluminum alloy to impose the same rate of 15 per cent of the provisional tariffs. Analysis of companies that will adjust the rate of domestic electrolytic aluminum prices have a negative impact on Chinese exports of aluminum products if the tariffs will be reduced by increased domestic electrolytic aluminum consumption, the price of electrolytic aluminum to a certain pressure. On the 18th International Aluminum rose Wenfeng, after topped 2,800 U.S. dollars / ton, but the performance of the domestic market is relatively calm.

According to August 19 the Securities Times news the Ministry of Finance introduced the latest aluminum export tax adjustment policies, under the general trade export of primary aluminum and aluminum alloy to impose the same rate of 15 per cent of the provisional tariffs. The analysts believe that this country is to curb the export of resource products yet another new deal, but this has excess supply of domestic aluminium market, however face even greater pressure.

Last weekend, the State Council Tariff Commission under the tariff notification, approved by the State Council, since August 20, 2008, the aluminum alloy, coke and coal export tariffs on some commodities, and other adjustments. Among them, the general trade exports under the provisional export tariff on aluminum, the tentative tax rate of 15% of the exports of coke tentative rate from 25% to 40%; preliminary coking coal export tax from 5% to 10 %; Other bituminous coal and other export levy provisional tariffs, the tentative tax rate of 10 percent.

By the news, yesterday (18) International Aluminum rose Wenfeng, after topped 2,800 U.S. dollars / ton. But the domestic market was relatively calm yesterday Hulv AL0811 main futures contract was up 70 yuan, to close at 18,455 yuan / ton.

Great Wall Futures analyst Jingchuang Wai Yip said, this aluminum export tax adjustment, the actual market as early as expected, more stable investor sentiment. According to him, from 2004 onwards, the national industrial policy clearly inhibited by the high energy-consuming, high pollution and resource products for exports, as a traditional big power, electrolytic aluminum industry has been highly concerned about the policy. First of all countries abolished the export tax rebate of aluminum ingots, thereby increasing their export tariffs, and then in the subsequent series of control measures in the same way restrict exports of aluminum and alloys.

It is understood that because of the pressure facing excess capacity in recent years have been a large number of domestic exports of aluminum aluminum ingots, aluminum, but with the way these two countries were restricted, aluminum has become a disguised form of the main forms of export resources. According to customs statistics, the first half of this year China's unwrought aluminum rolling (including primary aluminum rolling and unwrought aluminum alloy), total exports 430,000 tons Chao, a 57.7% growth in the same period last year, of which only in June on exports more than 120,000 Tons.

And the tariff policy on the possible impact of the adjustments, the company yesterday reported that domestic electrolytic aluminum prices will have a negative impact. In the pointed out that China's 2008 exports were 1-6 in the unwrought aluminum rolling 380,000 tons, representing all of China's exports of aluminum products accounted for 23 percent of China's electrolytic aluminum consumption of 5%. Therefore if China's exports aluminum products increased tariffs will be reduced by domestic electrolytic aluminum consumption, the price of electrolytic aluminum to a certain pressure. But in the short term, due to the current cost of support by the electrolytic aluminum prices, aluminum prices not much room.

It is understood that since last year, including fuel, environmental protection, and taxes and fees, the cost of both upward trend, especially since the end of last year, with the sharp rise in energy prices, rise in the cost of electrolytic aluminum enterprises to accelerate the pace of sustained. Data show that at present all the raw material of aluminum companies rely on outsourcing primary aluminum production costs are already as high as 17,500 yuan / ton. Therefore, the domestic Aluminum in copper, zinc and other base metals prices fell sharply against the background, performance in the most resilience.

(August 20, 2008, China Industrial Economy Information Network)