China has canceled part aluminium export tax rebates, short-term will stimulate exports but not long-term effects | | industry information

by:AAG     2020-11-09

, according to New York on April 14, traders said China has canceled part of aluminum and steel products export tax rebates, this bold move is likely to make a further surge in the global market is already saturated supply, because producers to rob the tax rebate policy cancelled before selling surplus products. Although dumped may only be knee-jerk reactions, won't last too long, but the increase of China's exports may cause people to the global excess supply, and it is this surplus led to the worst industry crisis in decades. It will hurt both domestic and international market price, now the prices of these metals lowest level in years. The world's second-largest economy accounted for half of global steel and aluminum production. The us trade representative, said on Thursday that China has agreed to cancel from aluminum to textile industry and a series of controversial in the field of export subsidies. Waiting for more details at the same time, Asia aluminum, traders said they will continue to sell to overseas surplus products, even before the cancel refund to speed up the deal. “ In this period of time prior to the policy implementation. 。 。 Will have a large number of exports. Aluminum and steel products have enough inventory, enough to form a round, export boom & throughout; Capital economics, 资本经济(Capital Economics) Senior commodities analyst at Caroline Bain said. Symbol VS real * * * * steel and aluminium trade group welcomed China's decision to cancel part of the export tax rebate, think it is a symbol of China seek to reassure the United States. The United States last year to the world trade organization ( WTO) To lodge a complaint. U. S. trade experts said, the message and no substance. One source said, this is more a public relations wrist. After the United States congress held by the country's steel and aluminum production enterprises to participate in the hearing. Although China's aluminum market scale is not large, is 40 million tons, but the impact of policy changes may be amplified, because of its use may include automobile industry greater range of products such as sheet metal. Even if China's export decline due to tax rebate policy changes, also will not help ease worries about China's excess capacity. Critics say that it is overcapacity led to oversupply. China has said it has taken many measures to curb excessive production.
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