10 DECEMBER 2014AlCircle.com
The Govt. may not approve of Chinese smelter owners' plea to remove export duty
Edited by : AL CIRCLE
1 min read
At the China International Aluminium Industry Exhibition, some of the Chinese aluminium smelters have approached the government to revoke the 15% export duty that is imposed on primary aluminium, as reported on Tuesday.
However, traders in the aluminium business believe that the abolition will not be revoked as that would again raise the Chinese aluminium production leading to yet another situation of oversupply which hurts the industry as a whole.
The removal of the export duty will lead to a renewed spur to produce the metal with small, cost-effective smelters springing up everywhere and this will foil the government’s resolve to tackle the overcapacity in the aluminium industry which has prevailed for years.
The renewed production will also put a pressure on the environment with additional use of thermal power required for production.
However, traders in the aluminium business believe that the abolition will not be revoked as that would again raise the Chinese aluminium production leading to yet another situation of oversupply which hurts the industry as a whole.
The removal of the export duty will lead to a renewed spur to produce the metal with small, cost-effective smelters springing up everywhere and this will foil the government’s resolve to tackle the overcapacity in the aluminium industry which has prevailed for years.
The renewed production will also put a pressure on the environment with additional use of thermal power required for production.
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