"Analysis: Impact of Abolishing Export Tax Rebates on Zinc Consumption in PV, Ceramics, and Batteries"

Published: Feb 12, 2026 18:00

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According to an announcement issued by the Ministry of Finance and the State Taxation Administration, starting from April 1, 2026, the VAT export tax rebates for products such as ceramics and PV will be fully abolished (the original rebate rates were mostly 9%–13%). Products including batteries will undergo a phased reduction (dropping to 6% in 2026 and being fully abolished in 2027). Since solar panel mounting brackets partially use galvanizing, ceramics use zinc oxide, and batteries, based on the detailed list, include zinc-manganese batteries, SMM previously analyzed the impact on consumption as follows:

Due to the full cancellation of export tax rebates in April for solar panel mounting brackets (sheets & plates), some enterprises rushed to export, leading to a slight improvement in orders for hot-dip galvanized alloys.

Export orders for ceramics are mainly concentrated in large ceramic enterprises, while small and medium-sized enterprises have relatively small export orders, and the overall industry has not shown a significant export rush so far.

As batteries are subject to a phased reduction approach, the industry's reaction has not been significant based on current understanding.

Overall, the impact is relatively small. However, the cancellation of export tax rebates will force industrial upgrading, eliminate inefficient capacity that relies on tax rebates for survival, and promote the going global of high value-added products. In the short term, enterprise profits are under pressure, funding chain risks increase, and pricing strategies need to be restructured. However, in the long run, it will help accelerate market exit, reduce dependence on external demand, optimize the trade structure, reduce trade friction, and enhance the competitiveness of domestic enterprises.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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