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[SMM Analysis] China's aluminum foil exports fell 18.07% in April from a month earlier. Why have they fallen since hitting a new high in March?
Jun 2,2019 11:50CST
translation
Source:Www.smm.cn
The latest customs data show that in April 2019, the total export volume of China's five tariff numbers for aluminum foil was 102800 tons, 125500 tons last month, 107700 tons in the same period last year, and 18.07 percent lower than the previous month. It was also down 4.53% from a year earlier.
The content below was translated by Tencent automatically for reference.

The latest customs data show that in April 2019, the total export volume of China's five tariff numbers for aluminum foil was 102800 tons, 125500 tons last month, 107700 tons in the same period last year, and 18.07 percent lower than the previous month. It was also down 4.53% from a year earlier.

China's aluminum foil exports hit an all-time high in March, but failed to continue the rally in April. Through SMM investigation and analysis, there are mainly the following three reasons.

1. The export tax rebate rate for aluminum foil will be cut to 13% from 16% on June 30, and companies will try to export aluminum foil made from 16% VAT raw materials by that date. However, most of the raw material stocks of aluminum foil enterprises are in 3 to 10 days, and the production cycle is more than 7 days to 1 and a half months according to the different products, and the tax reduction policy has been announced since the beginning of March and settled on March 22. Aluminum foil enterprises in order to avoid the loss of tax differentials of three points, most of them are prepared early, so this part of the aluminum foil in order to fully refund the tax rebate contributed to the larger export volume in March, and the export volume fell accordingly in April.

two。 Seasonal off-season. Enterprises said that double zero soft bags, lunch boxes and other products export orders since April gradually declined, some seasonal factors. This can be confirmed by customs data-products with tariff number 76071120 (unprocessed unlined aluminum foil after rolling, 0.007mm < 0.01mm) increased slightly by 4000 tons in April compared with the previous month. The export volume of other aluminum foil products decreased in varying degrees compared with the previous month.

Data sources: China Customs, SMM

3. The Shanghai-London ratio rose continuously in April, reaching a high of 7.86 at one time, and the export profit of aluminum foil was squeezed, which affected the export volume of aluminum foil in April to some extent. However, compared with the aluminum strip, the export of aluminum foil products is less affected by the Shanghai-London ratio, because the aluminum foil processing fee is higher than the strip processing fee, and the raw material price accounts for a lower proportion of the total price.

Data sources: LME, SHFE, SMM

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