Aluminium prices jump 10.7% Y-o-Y: China's trade policy drives market shift

The recent announcement by China's Ministry of Finance to terminate export tax rebates for aluminium and Copper, effective December 1, is expected to have a profound impact on global metal markets. This policy shift, which is likely to artificially constrain supply and drive up international prices, could significantly alter the global metal trading landscape. The decision, which effectively increases the cost of Chinese metal exports, has the potential to make them less competitive while protecting domestic manufacturers. By removing tax incentives, China is strategically repositioning itself in the global metals trading ecosystem, a move that will force international buyers to reconsider their sourcing strategies and seek alternative suppliers in other emerging markets.

The spot contract, set to be traded on December 5, is expected to maintain steady pricing, with a premium of RMB 0-40 and an average of RMB 20 per tonne.

The average A00 aluminium ingot pricing increased further in most of the provinces, with prices depicted as RMB 20,420 per tonne (+170) in Gongyi, RMB 20,530 per tonne (+180) in Foshan, RMB 20,540 per tonne (+160) in Wuxi, RMB 20,570 per tonne (+160) in Hangzhou, and RMB 20,530 per tonne (+190) in Chongqing. The a00 aluminium ingot pricing in the provinces of Shenyang, Tianjin and Linyi also heightened this time on a similar ratio and stood at RMB 20,500 per tonne (+160), RMB 20,500 per tonne (+140), and RMB 20,470 per tonne (+160), respectively. The price range in the provinces has varied on Friday between RMB 20,400 per tonne to RMB 20,590 per tonne.