China’s effort to limit exports affects aluminium shares and prices

The cancellation of the tax relief of exports by industry has allowed industry to try to assess the impact on supply flows, with Chinese companies suffering a sharp fall in their shares, while international companies note rally, according to a report in Bloomberg. China presented a reform of the export tax-deduction regime late Friday (15.11.2024), announcing plans to abolish a tax discount of 13% on overseas sales of aluminium, copper, as well as cutting off the lighters on batteries and solar panels. Aluminum Corp of China and China Hongqiao Group, the country’s top two aluminum foundries, retreated up to 5% in Shanghai and Hong Kong, before limiting losses, while Yunan Aluminum reached a 10% drop daily limit in Shenzhen. Aluminium has increased nearly 6% on the London Metal Exchange since Thursday’s closure.