Cancellation Of Aluminum Export Tax Rebate—Research Records Of Aluminum Processing And Export Enterprises
On November 15, the Ministry of Finance and the State Administration of Taxation issued the "Announcement on Adjusting Export Tax Rebate Policies" to cancel the export tax rebates for aluminum and other products starting from December 1, 2024, involving a total of 24 tax types of aluminum material numbers. It is understood that the aluminum export tax rebate involved in this cancellation is 13%. The cumulative export volume of aluminum materials involved in the "Announcement" from January to September 2024 is 4.6198 million tons, accounting for 99.7% of my country's total aluminum exports; in 2023, the export volume of aluminum materials involved in this cancellation of export tax rebates is 5.2367 million tons tons, accounting for 99.8% of aluminum exports during the same period. The aluminum team conducted a survey on some domestic aluminum processing companies, and the feedback is as follows:
Enterprise A:> Guangdong Province mainly deals in building materials and industrial materials, with an annual production capacity of 60,000 tons, and exports account for 60%. It has had a considerable impact on businesses, but there is currently no way to deal with it. We can only try to snap up existing orders before the policy is officially implemented. Issue in advance and communicate with customers whether orders need to be placed in advance.
Enterprise B:> Guangdong Province, which mainly produces industrial materials, has an annual production capacity of 50,000 tons, with exports accounting for 50%. It is estimated that there will be an impact within six months, but there is no better way. All orders placed by customers will be completed in advance before the policy is implemented. I can only watch while walking.
Enterprise C:> Guangdong Province, which is dominated by 3C electronics, has an annual production capacity of 100,000 tons and exports account for a small proportion. At present, it still mainly focuses on domestic business. There is currently no impact. If there is not much profit margin in the future, we will consider cutting it off.
Enterprise D:> Guangdong Province, which mainly produces building materials, has an annual production capacity of 100,000 tons and exports account for 50%. Products are mainly targeted at the high-end market. The impact is there. Currently, we are working as quickly as possible to fulfill existing orders. How to respond next is unclear.
Enterprise E:> Anhui Province mainly focuses on photovoltaic frames and automotive materials, with an annual production capacity of 160,000 tons, and 30%-40% of photovoltaic output is exported. It has little impact. Our tax rebates did not initially go to customers. The customer compared the post-cancellation prices and found that there was still a price difference compared to overseas purchases.
Enterprise F:> Shandong Province has a production capacity of 120,000 tons, mainly all-aluminum furniture, and exports account for more than half, mainly to India. After the policy is introduced, we mainly wait and see the market reaction. Manufacturers bid more, and now manufacturers are making finished products. There is not much inventory, and the production cycle of overseas orders is long, which has little impact on finished product inventory. Now we just have to wait.
Enterprise G:> Guangdong Province, which mainly produces building materials and industrial materials, has an annual production capacity of 400,000 tons, with exports accounting for 30%. The impact is not small. The top priority is to rush orders before December 1, and the next step is to increase prices. The company has also considered building factories overseas in the future, but feels it will not be that easy.
Enterprise H:> Shandong Province, 100,000 tons, mainly engaged in automobile aluminum profiles, water-cooled motor casings, battery packs, automobile brackets, anti-collision beams, and brackets. They have just received overseas orders, and the cancellation of tax refunds has a great impact on them. At this time, the node is very embarrassed, and problems will occur when signing some orders. What tax point will be signed, and whether the difference will be shared equally by both parties or something else. It is unlikely to be finalized anytime soon.
Enterprise 1:> Guangdong Province, which mainly produces industrial materials, has an annual production capacity of 50,000 tons and exports account for about 60%. The impact is there. First, we must seize the time and complete existing orders before the policy is implemented. Other subsequent decisions will be made by the boss. .
Enterprise J:> Guangxi Zhuang Autonomous Region mainly deals in curtain wall panels, ceilings, ceramic tiles, etc., with an annual production capacity of 200,000 tons and exports accounting for 20%. In the past two days, previous foreign trade orders have been accelerated. What happens next is unclear at the moment. There is a situation in independent export and foreign trade, and there will definitely be fewer orders after the tax rebate is cancelled.
Enterprise K:> Anhui Province, with an annual output of 600,000 tons, has 5 factories in Chuzhou, Anhui. 3 are mainly engaged in photovoltaic frame business, one is mainly engaged in aluminum rod casting, and the other factory is mainly engaged in the production of new energy vehicles and industrial materials. For those with exports, this ratio is not very clear. Customer feedback indicates that this depends on the strength and scope of specific policy implementation. This is a transitional stage and there is no corresponding solution yet. The specific impact will depend on subsequent market conditions. Generally speaking, this price may be acceptable to customers who just want it, but it may not be acceptable to customers who are wavering, which means that the order churn rate will also increase.
Enterprise L:> Jiangsu Province mainly operates battery foil and double-zero foil, with an annual production capacity of 50,000 tons and an export share of 10%. We are currently discussing with our customers how to handle current orders and are still in further communication. There are very few follow-up orders.
Enterprise M:> Liaoning Province mainly deals in can materials, military aluminum materials, and aerospace aluminum materials, with an annual production capacity of 1 million tons and exports accounting for 20%. We are currently working hard to secure export orders, and subsequent orders are still being negotiated with customers. The exact impact is unclear. Basically, I export my own orders.
Enterprise number:> Anhui Province has an annual production capacity of 100,000 tons, mainly building materials and industrial materials, with export orders accounting for 10%. Feedback effects definitely exist. The next step is to compare industry competitiveness and technological management advancement. It can also better promote the development of the industry and speed up the elimination of backward production capacity.
Enterprise O:> Henan Province mainly deals in curtain wall panels, roll-coated coils, smooth coils and other products, with an annual production capacity of 200,000 tons and export volume accounting for 30-40%. The abolition of tax rebates has a huge impact on us. Now we are busy with export orders. Many export orders were cancelled, and I was worried about missing the shipping date.
Enterprise P:> Zhejiang Province mainly deals in curtain wall panels, with an annual production capacity of 100,000 tons, and exports account for 10-20%. Currently, foreign trade customers place export orders before the 25th, and shipments are being gradually arranged in the past few days. The follow-up wait and see situation is unclear, and export orders will definitely get worse.
Enterprise questions:> Guangdong Province mainly deals in aluminum plates and strips, with an annual production capacity of 150,000 tons, and exports account for 50%. The export method can be self-operated or through a trading company. This policy has a great impact on enterprises. It is equivalent to walking on two legs, one of which is broken. Short-term orders will definitely decrease. Overseas customers will first look for processing companies overseas to supply and set prices. In contrast, it is unclear how long this adjustment cycle will take. For the domestic market, aluminum plate and strip will intensify internal coiling. Currently, the Ministry of Foreign Trade is busy handling various contract matters.
R Enterprise: Jiang> Su Province mainly operates food packaging foil, with a monthly production capacity of 7,000 tons, an annual production capacity of 100,000 tons, and exports accounting for 50%. The abolition of tax rebates has a huge impact on us. We have been rushing for export orders these days. Mainly engaged in battery foil and flexible packaging battery foil products, with a monthly output of 3,000 tons, flexible packaging of 1,000 tons, and an annual output of about 5w. Next year the company will increase to 80,000, and there will be basically no exports.
Enterprise S:> Henan Province, mainly engaged in CTP/PS board base, electrolytic capacitor aluminum foil, aluminum foil blanks, brazing plates, medium and thick plates and other products, with a production capacity of 1.6 million tons and an export share of 20%. Current orders are shipped quickly, and orders this month will be shipped normally. No problem, all December orders will be affected. Customers are still digesting this information. At the same time we are meeting to study the 13% amount. There's extra money if next month's materials are delivered early.
Enterprise T:> Zhejiang Province mainly produces aluminum coils for new energy vehicles, with an annual production capacity of 50,000 tons and an export share of 60%. The export method is mainly self-operated, and the company has a dedicated foreign trade department. The cancellation of export tax rebates has a great impact. The company is currently actively processing bonded warehouse inventory and sorting out export-related orders. Next, it will renegotiate the contract with the customer. Some orders will definitely be lost. The exact amount of the reduction has not yet been determined. The priority bonded processing warehouse is fully stocked, and many orders are too late to be produced.
Enterprise U:> Shandong Province mainly produces medium and thick plates, automotive aluminum plates, aviation aluminum plates, decorative plates, battery foils, electronic foils, food packaging foils, medical foils and other products, with an annual production capacity of 700,000 tons. Our monthly aluminum foil exports account for less than 10%cnc search, and the current impact of cold-rolled coils is relatively small. There is currently no impact on our production. This should impact aluminum foil orders next month. The export method is mainly self-operated.
Enterprise V:> Shandong Province mainly produces CNC turning can lid products, with an annual production capacity of 80,000 tons and exports accounting for 60%. The export method is self-operated. Like Nanshan Weiqiao Hope and other companies, we ship more before December 1st and start shipping after the 1st. Adjust prices.
Enterprise W:> Anhui Province has an annual production capacity of 30,000 tons and is mainly engaged in the production of building materials, auto parts, and leisure supplies-related industrial materials. 40% of its exports are foreign trade, and export orders include both construction materials and industrial materials. This part is the key development part this year. After the policy was introduced, the impact was still very obvious. We should increase our efforts on early orders and carefully consider subsequent orders.
To sum up, the aluminum processing companies surveyed had mixed reactions to this policy. Some companies will complete the customs declaration procedures for early orders as soon as possible before December 1, and start to increase product quotations a day later; or renegotiate the contract content with customers; or reduce orders, or even directly suspend export orders to wait and see the market reaction. In the short term, the loss rate of export orders will increase, companies will face greater order pressure, and competition in the domestic market will intensify. In the long term, considering the supply gap in the overseas aluminum market, the reliance on China's aluminum demand is still large, and domestic aluminum still has great potential in the international market. The aluminum export market is facing certain adjustment cycles and pains. As far as the global market is concerned, the aluminum element is undergoing a rebalancing process.