China Cancels Aluminum Export Tax Rebate, Aluminum Prices Normalize

On November 15, China’s Ministry of Finance and State Administration of Taxation announced significant changes to export tax rebates. Starting December 1, 2024, the export tax rebate will be canceled for 24 HS codes of aluminum and copper products, including aluminum Circle, plates, strips, and foils.

In 2023, China exported 5.25 million tons of aluminum, accounting for over 50% of global supply. With a 17.5% growth in 2024, the cancellation of the tax rebate will disrupt the aluminum supply chain, increasing global aluminum costs and pushing up LME (London Metal Exchange) prices.