China is considering plans to either scrap or reduce export tax rebates on some aluminium extrusion products as well as on stainless steel wires and rods, the China Securities Journal reported on April 12, 2011, without identifying sources.

China's finance ministry is weighing whether to cut export rebates for some aluminium extrusion products to 9 percent from the current 13 percent, and to abolish the 5-percent rebate for exporting stainless steel wires and rods, the paper said.

"The cuts could come very soon," said a trader, whose firm exported semi-finished aluminium products. He added the cuts could be Beijing's response after a few importing countries imposed anti-dumping taxes on some Chinese aluminium products.
China raised tax rebates on semi-finished aluminium products in 2008 and 2009 as part of efforts to boost exports in the wake of the global financial crisis.

But aluminium products exports surged 56.2 percent to 2.2 million tonnes in 2010, prompting Beijing to consider rebate cuts.

Industry sources said Beijing in the fourth quarter of 2010 had worked out a proposal to cut tax rebates on some aluminium products to between 5 and 8 percent, from 13-15 percent, and the target starting time was January 2011. The government did not use that proposal and continued to monitor exports.

The exports surged 33 percent on the year to 370,000 tonnes in the first two months of 2011.

Fan Jianping, head of economic forecasting at the State Information Center think tank, said in March that China was likely to gradually restrict exports of copper and aluminium products and would cut export rebates and impose new export taxes to achieve its aim.

Simple semi-finished aluminium products would be the first aluminium products to see rebate cuts, Fan added.

China, the world's second-largest economy, has sought to limit exports from its energy-intensive and high-polluting industries.

China last scrapped export-tax rebates on some exports in June, which was also part of efforts to ease trade tensions.