19 November 2024 – The Chinese government has scrapped the export tax rebates of 13% for aluminum and copper. But photovoltaics and batteries will also have lower export tax rebates in future. And Asian iron ore prices rose again today (Tuesday), in some cases by more than 3%.
China eliminates export tax rebates for aluminum and copper
Last Friday, the Chinese government scrapped the export tax rebates of 13% for aluminum, copper and some other export goods. In addition, the export tax rebates on certain refined petroleum products, photovoltaics, batteries and some non-metallic minerals were reduced from 13% to 9%.
Price jump for aluminum
According to calculations by Deutsche Bank, the price of aluminum for delivery in three months on the London Commodity Exchange (LME) rose by around 8.5% last Friday. As a result of the abolition of tax relief, Chinese aluminum is likely to continue to reach the world market, but will be offered at a significantly higher price. Many buyers are therefore already looking for alternatives to Chinese aluminum.
Analysts assume that demand for the white metal will continue to rise noticeably in the coming years. This suggests that aluminum prices could have further upward potential.
Iron ore prices continue to rise
Iron ore prices on the Chinese Dalian Commodity Exchange (DCE) continued to rise on Tuesday, gaining more than 3%. Iron ore futures on the Singapore Exchange (SGX) improved by around 1.9%. Chinese Port Stock and Port CFR iron ore prices rose by around 0.7% today in response to the rise in futures.
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