Hong Kong Dec. 21 news: High-level metals industry sources said on Tuesday that the Chinese government’s decision to levy tax on aluminum exports may reduce new aluminum smelting capacity next year and accelerate the elimination of inefficient smelters that are not competitive. Industry sources have not disclosed. The taxation standard also stated that the export tax rebate that has been implemented is expected to be cancelled from January 1, 2005. The above two measures are expected to reduce China’s aluminum export volume in 2005. Domestic aluminum prices will decline and should be reduced by exports. This led to an increase in internal supply. The Xinhua News Agency reported on Saturday that the government plans to resume appropriate export tariffs on metals such as aluminum, copper and nickel from January 1 next year, but did not disclose the level of taxation. The tax is mainly targeted at unprocessed The metals, therefore, will not have a great impact on copper and nickel producers as there is a shortage of copper and nickel in China. One official said, "China is a net importer of copper and nickel." They stated that China exports copper Most of nickel and nickel belong to the processing trade, that is, smelter imports of raw materials, after processing, duty-free exports. Analysts of a Shanghai-based metal company said that the export tax will restrict domestic aluminum prices and new production capacity. Many aluminum smelters The news was surprised because many government agencies opposed the levy of the tax. The aluminum plant said it expects the government to levy a 5% export tax on unprocessed aluminum for automobiles, construction, and packaging. China's aluminum industry already faces 8% aluminum exports. The cancellation of the tax rebate will be implemented starting from January 1. A senior person from the South Smelter said: “We definitely will not start new production next year.†He also said that the company’s annual output of 125,000 tons of the plant will be in the second half of 2005. Completion. The manager of Jingyi Futures, Chen Jinhua, stated that after the levy of export tax and the cancellation of export tax rebates, the export price is only 4,000 yuan higher than the domestic price. The current export price is about 800 yuan higher than the domestic price. The government adopted macro-control measures, including controlling credit and increasing electricity prices, to curb the expansion of production capacity in the high-energy aluminum industry. In 2003, China's aluminum production capacity reached 8.34 million tons. Many aluminum plants are currently operating at a loss, sources said that the export tax may be Forcing uncompetitive factories to stop production next year. ** Copper export rebates will be cancelled or ** Copper and nickel smelters’ high-level sources say that the government may cancel VAT export rebate for these two metals Currently, the export tax rebates for copper and nickel are 5% and 8%, respectively. The value-added tax rate is 17%. A senior official of Jiangxi Copper, a large copper producer in China, said, “We are certain that the export tax rebate will be cancelled. Because of its role in stimulating exports, the government is currently trying to curb exports. "The official expects that the new export tax on copper used for electricity, infrastructure and energy will be set at 2-5%. China's second largest copper producer. -- An official from Tongling Nonferrous Metals (Group) Co., the parent company of Tongdu Copper, said he was concerned that the government would strengthen control over the copper processing trade. "If the policy remains unchanged next year, the new tax will not have much impact on the industry." "Government sources said that Beijing will increase its control over copper processing trade and eventually abolish the existing model. Jiangxi Copper and Tongling Nonferrous Metals are major copper exporters this year. China's larger nickel producer Jinchuan Nonferrous Metals Co. This year is also used for production? The main exporter of raw nickel for steel. The government has banned the direct import of alumina with a smelting capacity of less than 100,000 tons of aluminum smelters. Alumina is the main raw material used to process aluminum. The ban will target those who use outdated technology or not The government approved an aluminum smelter that was established after April 2002. Last year, about 90% of aluminum exporters in China were involved in the processing trade of aluminum. In the past 11 months, China’s exports of primary aluminum have increased by 41% to 120%. Ten thousand tons, due to the rise in international aluminum prices stimulated the export of aluminum. Refined copper exports surged 104% to 121,725 ​​tons, while nickel exports also surged 50% to 14,112 tons.