China May Reinstate Aluminum Profile Export Rebates

BEIJING, China, November 18, 2008 - Steel Guru - Reuters reported that China is likely to reinstate tax rebates on exports of extruded aluminum profiles, widely used in the construction sector, as part of its latest move to boost exports.

China's cabinet, the State Council said it would increase tax rebates on exports of more than 3,770 items from December, the second batch announced in less than one month to bolster its flagging economy.

A manager at an aluminum fabricating plant in Nanhai city in Guangdong said "Aluminum profiles will be given back a rebate. The rebate may be 5% to 8%. He added that exports of aluminum rods might also be given a 5% tax rebate.”

Industry sources said but the new rebates may not boost exports of aluminum profiles and rods in the coming months due to weak overseas demand dampened by the global financial crisis and recession fears. A manager at the international trade department of a large aluminum smelter said "Exports need overseas demand. Now, there is no such demand. The manager said he expected exports of aluminum products to remain low in the first quarter of next year.

China's exports of aluminum products in the first nine months of the year only grew 4.5% on the year, compared to a 50% rise for the full year 2007.

China, profiles, extrusions, tariff, rebate, exports, tax, aluminum,