Update on China’s Cancellation of 13% Export Tax Rebate

On Friday, November 15, China’s Ministry of Finance announced the cancellation of the 13% export tax rebate for aluminium products, including sheet materials. The removal of the tax rebate will take effect from December 1st.

The announcement triggered a jump in aluminium prices on the London Metal Exchange as traders anticipated it may curb a heavy flow of Chinese aluminium abroad.

The news also contributed to a sharp rise in U.S. soyoil prices as it appeared Chinese used cooking oil would be covered by the changes.

Chinese shipments of used cooking oil to the USA and Europe for use in biofuel have challenged locally produced feedstocks like soyoil.

China's used cooking oil exports typically fall under the customs category of chemically modified animal, plant, or microbial oils and fats category, for which export rebates will be scrapped.