Analysis: China’s tariffs on US aluminium scrap to change trading pattern -Shanghai Metals Market

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Analysis: China’s tariffs on US aluminium scrap to change trading pattern

SMM Insight 01:35:43PM Apr 03, 2018 Source:SMM

SHANGHAI, Apr 3 (SMM) - Aluminium scrap imports from the US face a 25% tax from April 2 onwards as China ended its tariff concession on 128 items from the US in a retaliatory move amid an escalating trade war.

However, SMM believes that not all US aluminium scrap is subject to the tax.

Under the regulation, if one imports US aluminium scrap for trading, such tariffs would apply. But no tariffs would be levied if the imported materials are used for further processing, SMM understood.

This means that the ratio of US aluminium scrap imports for processing will increase. Currently, it accounts for less than 50% of the whole China-US aluminium scrap business, according to Chinese customs data.

Chinese domestic aluminium scrap producers and those from other countries are likely to see more trading businesses. SMM also believes that domestic aluminium scrap prices would remain high in the short term due to tight supply at home.  

 


For editorial queries, please contact Daisy Tseng at daisy@smm.cn 
For more information on how to access our research reports, please email service.en@smm.cn

Key Words:  aluminium scrap   US   tariffs 

Analysis: China’s tariffs on US aluminium scrap to change trading pattern

SMM Insight 01:35:43PM Apr 03, 2018 Source:SMM

SHANGHAI, Apr 3 (SMM) - Aluminium scrap imports from the US face a 25% tax from April 2 onwards as China ended its tariff concession on 128 items from the US in a retaliatory move amid an escalating trade war.

However, SMM believes that not all US aluminium scrap is subject to the tax.

Under the regulation, if one imports US aluminium scrap for trading, such tariffs would apply. But no tariffs would be levied if the imported materials are used for further processing, SMM understood.

This means that the ratio of US aluminium scrap imports for processing will increase. Currently, it accounts for less than 50% of the whole China-US aluminium scrap business, according to Chinese customs data.

Chinese domestic aluminium scrap producers and those from other countries are likely to see more trading businesses. SMM also believes that domestic aluminium scrap prices would remain high in the short term due to tight supply at home.  

 


For editorial queries, please contact Daisy Tseng at daisy@smm.cn 
For more information on how to access our research reports, please email service.en@smm.cn

Key Words:  aluminium scrap   US   tariffs