SHANGHAI, Dec. 8 (SMM) – Some Chinese aluminum smelters appealed to the government to remove 15% export duty imposed on primary at the Recent China International Aluminum Industry Exhibition, cnmn. com reported today. 

 

But the plea may probably end up in vain as abolition of the export tariff will compound overcapacity and hurt the environment and downstream sector, it added.  

 

One trader at the exhibition said export duty revocation is unlikely to happen as it is against the Chinese government’s resolve to tackle overcapacity in aluminum industry. Should export tariff be cancelled, lots of small and cost-inefficient smelters will reopen, thus exacerbating already surplus market. 

 

Besides, aluminum smelting, which relies mainly on thermal power, will do more harm to the environment once idled capacity is restarted on a large scale.   

 

Moreover, export duty cancellation will undermine the competitiveness of Chinese aluminum processors in overseas market by depriving their cost advantages.