China’s Finance Ministry announced Friday that export tax cuts on metals such as copper and aluminum, as well as other products, would be removed next month.
“Rebates on export taxes on aluminum, copper, processed vegetable and animal oils as well as microbial oils will be canceled,” the ministry said, adding that the measure would take effect on December 1 .
This initiative should increase the selling price of these materials for local companies in the country which is the world’s leading exporter of metals. Aluminum and copper are key materials for the manufacturing, automotive and construction industries.
Aluminum and copper on the rise on the London Stock Exchange
Importers of these metals, including the United States, Japan and South Korea, risk facing higher prices if these tax cuts are removed.
In addition, discounts on export taxes “for certain refined oils, photovoltaic products, batteries and other mineral products” will be reduced from 13% to 9%, the ministry’s press release further indicates.
In London, aluminum prices jumped by more than 7% around 1:00 p.m. while copper prices increased by more than 1%.
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