MNI BRIEF: Chinese Aluminium Exporters To Renegotiate Prices
MNI (BEIJING) - Chinese aluminium exporters will attempt to renegotiate higher prices with buyers following the government's decision to cancel a 13% tax rebate on overseas shipments, Shanghai Metals Market analysts said on Wednesday, calculating the move will add CNY2,859 per tonne to exporters costs.
Export volumes will likely drop in the short term and negatively impact domestic prices, the analysts said.
The move does not include high value-added aluminium products, which will stimulate export enterprises towards high-end variants of the metal, SMM continued.
Beijing’s stimulus measures will likely maintain iron ore prices at about USD100 a tonne until 2025, while steel prices could see short-term upward momentum as Chinese exporters rush shipments ahead of any potential renewed trade war with the U.S., a policy advisor told MNI recently. (See MNI INTERVIEW: China Stimulus To Hold Iron Ore Around USD100/t)