SHANGHAI, Jul. 27(CBI China) -- The Ministry of Finance announced on July 19th that aluminum bar (custom code: ex76041000) will receive a provisional export tax of 15% effective August 1st.
Aluminum exports decreased significantly after the aluminum export tax was increased from 5% to 15% on 1 November 2006. In addition, exporters began to shift from aluminum to finished aluminum products such as aluminum bar, leading to a significant increase in the amount of finished aluminum exported.
CBI believes exports of finished aluminum products should remain high in order to offset the huge surplus in the domestic aluminum market.. The new export tax will only cause aluminum bar exporters to turn to aluminum sheet and foil which still receives an 11% export rebate. As a consequence, CBI predicts exports of aluminum sheet and foil should increase significantly in 2H07.