Customs Details of Copper Foil in October 2024: Cancellation of Export Tax Rebates to Impact Future Exports [SMM Analysis]

According to data from the General Administration of Customs, China imported approximately 7,050.15 mt of copper foil in October 2024, down 11.79% YoY and 1.54% MoM. From January to October 2024, China’s cumulative copper foil imports were about 75,827.22 mt, down 0.57% YoY.

In October 2024, China’s copper foil import value was $124.7209 million, down 4.08% YoY and 1.86% MoM. From January to October 2024, the cumulative import value was $1.3066 billion, up 8.09% YoY.

China exported approximately 4,580.22 mt of copper foil in October 2024, up 26.99% YoY and 12.83% MoM. From January to October 2024, the cumulative export volume was about 42,191.33 mt, up 6.86% YoY.

In October 2024, China’s copper foil export value was $56.3149 million, up 37.56% YoY and 10.30% MoM. From January to October 2024, the cumulative export value was $516.5178 million, up 11.45% YoY.

In October 2024, China’s copper foil import volume slightly declined while export volume significantly increased, resulting in a trade deficit of approximately $68.41 million, down about $7.61 million MoM from $76.02 million in the previous month.

By country, the main import sources of China’s copper foil (excluding copper alloy foil) in October 2024 were China Taiwan (3,508.93 mt), Malaysia (632.13 mt), and South Korea (514.14 mt).

The main export destinations for China’s copper foil (excluding copper alloy foil) in October 2024 were Thailand (579.23 mt), Saudi Arabia (528.89 mt), and Egypt (474.51 mt).

In October, due to the National Day holiday, China’s copper foil import volume slightly declined. In terms of exports, with the overseas holiday approaching, there was pre-holiday stockpiling demand from downstream overseas markets, leading to an increase in copper foil exports in October, with a significant increase in exports to Saudi Arabia.

On November 15, 2024, the Ministry of Finance and the State Administration of Taxation announced that from December 1, 2024, export tax rebates for products such as aluminum semis and copper semis would be canceled. Copper foil and copper-clad laminates for printed circuits were included in the list of products for which export tax rebates would be canceled, which is expected to impact future copper foil exports. From January to October 2024, most copper foil exports were conducted through ordinary trade. After the policy implementation, these export orders will increase the costs for copper foil enterprises by 13%. In contrast, processing with imported/supplied materials is taxed based on processing fees, resulting in relatively lower cost increases. Therefore, the form of China’s copper foil exports is expected to change in the future. Additionally, overcapacity remains a fundamental issue for copper foil, and the new policy will accelerate the market exit process.

In the short term, the approaching implementation of the export tax rebate cancellation policy will prompt enterprises to expedite their current export activities, and copper foil export volumes are expected to see significant growth in November.