The China Aluminum Alloy in International Market: Export Increased

Some merchants showed their opinion: the enterprises in China are increaseing aluminum alloy export for profit under the international atmosphere of high price.This increase of export directly caused the supply’s going up in Asia.On the contrary, the export of aluminum board is falling because of the control of custom.

  China is the biggest producing country and consumptive country.China government is trying to lessen the export of original aluminum and semi-manufactured goods by abolishing export tax refund policy to control the aluminum industry.

  But the output of aluminum in the first quarter this year rised by8% on the base of rising by 34% last year.This led overstock getting more serious and compelled those smelting companies to export aluminous products which have no drawback.

  A merchant from a big international trade company said: “ many people are trying to manufacture and export aluminous alloy ingot and flan, the Chinese products are widespread in Korea market.This merchant disclosed: in China, it takes about 500 yuan to transform one ton original aluminum to aluminous alloy ingot. Aluminous alloy ingot has no export tax, while original aluminum has a export tax of 15%. Aluminous alloy ingot is made by adding small metal. Aluminous alloy flan can use original aluminum and scrap aluminum as raw materials.

  Accrding to the data from Costom , China exported 49,840 mts Aluminous alloy that was not rolled in April this year,rising by 77.1%, compared to the same period last year. China exported 133,951 mts aluminous alloy in the first four months,rising by 57.8%,compared to the same period last year.

  The price of futures of aluminum in LME has risen by 20% over the past three months.It was $2895/t in Friday. But the price in China is laggard.The Hu Aluminum in SHFE rised by less than 4% and the price is 18,875RMB.

   “Strengthen controlling of export of aluminous pipe and aluminous aluminum board”

   The Korea custom agreed to debase the import tax rate to the same as aluminous ingot in the end of last year.From then on, the enterprises increased export of aluminous alloy ingot to Korea. This caused more strict controlling to export of aluminus pipe.From February, the aluminous pipe which is made from original aluminum came under the tax item of original tax.This act made exporters have to lessen consignment of aluminous pipe,but turn to export aluminous board.

  But in May, the Custom strengthened the export of aluminous board which is made from original aluminum.So aluminous board is seen as original aluminum when it is exported.

  Aluminous pipe and aluminous board are both made from alloy.So it has 11%-!3% export tax refund, and has no export tax.But some officials disclosed that government is considering to reduce or cancel it’s export tax refund.