Aluminum export tax rebate or reduce 4% business expectation buffer period

On May 9th, it was learned from a number of aluminum extrusion companies that the State Ministry of Finance is brewing to lower the export tax rebate for certain commodities, among which the export tax rebates for some aluminum profiles will be reduced from the current 13% to 9%.

"Aluminum products with a value of 1 million tons, including 17% of value-added tax, if the export tax rebate rate is reduced by 4 percentage points, the company will reduce the income of more than 34,200 yuan." On May 9, Xingfa Aluminum Co., Ltd. (00098.HK) Deputy Minister of Export Ding Dan expressed concern.

Ding Dan explained that the aluminum profile industry is mostly dominated by private enterprises, and the industry profits are mostly between 8-10%, which is “extremely transparent”. The current export tax rebate rate is lowered, and the exchange rate between the *** and the US dollar has slipped from 6.5 to 6.4 within one month. Coupled with the exchange loss, corporate export profits have become even thinner.

Reducing the export tax rebate rate for aluminum exports is considered to be an adjustment of the “two-high-funded” high-energy-consuming industries. It is also another heavy blow after the country’s investment in more than 700 billion electrolytic aluminum, but it has continuously encountered Canada and Australia. After the “double reverse” of aluminum profiles in countries such as the United States and the United States, the export situation of the domestic aluminum extrusion industry has been difficult.

Several corporate sources have confirmed that although no documents from the government have been received at present, the credibility of the news is extremely high; if it is finally announced, it may eventually be implemented in June. In view of the great impact of the export tax rebate on the industry, involving nearly a million people in employment, many companies are calling for delays.

Ding Dan, for example, Canada and the United States "double anti-", China's aluminum extrusion companies have been punished by more than 100% of the tariffs, thus losing the two billions of dollars in the market. "Australia's 'double reverse' final approval of the 16% punitive tariff is not too high, but it also gives up a larger part of the market."