(Bloomberg) -- China shipped near-record volumes of aluminum in November as exporters rushed to benefit from tax discounts that were canceled from the start of this month.
Beijing last month announced it would withdraw a tax rebate of 13% that for years has helped juice overseas sales of aluminum. The move appears to have triggered a selling frenzy, with traders and producers trying to ship as much as possible before the end of November.
Exports of unwrought aluminum and products surged 37% to 668,940 tons in November. That volume has only been surpassed once before, in May 2022, when the global aluminum market faced deep disruption in the aftermath of Russia’s invasion of Ukraine.
China’s export rebates were removed or reduced from Dec. 1 for a range of goods, including copper and some oil products, in a move that was seen as an attempt to tackle domestic overcapacity and excessive competition in those sectors.
Meanwhile, the boom in China’s steel exports showed signs of cooling in November, with volumes plunging by nearly a fifth from October to 9.28 million tons. Imports of unwrought copper and products rose to their highest in a year after a pullback in prices enticed buyers.
Among energy products, coal imports hit a record of nearly 55 million tons as China continued to prioritize security of supply heading into the peak demand season. Crude oil imports jumped to a three-month high as refiners sought to use up their quotas before the end of the year.
On the Wire
Companies in China rushing to ship goods to the US before new tariffs drove exports higher in November, while imports unexpectedly fell in another sign of continued weakness in the domestic economy.
Iron ore rose to an eight-week high on optimism that bold pledges from China’s top leadership to revive growth would flow through to improvements in the economy and property market.
China’s top leaders signaled bolder economic support next year using their most direct language on stimulus in years, as Beijing braces for a trade war when Donald Trump takes office.
This Week’s Diary
(All times Beijing unless noted.)
Tuesday, Dec. 10:
- China’s 1st batch of Nov. trade data, including steel, iron ore & copper imports; steel, aluminum & rare earth exports; oil, gas & coal imports; oil products imports & exports; soybean, edible oil, rubber and meat & offal imports ~11:00
- China’s monthly CASDE crop supply-demand report
- Intl Energy Executive Forum on the energy transition, Beijing, day 2
Wednesday, Dec. 11:
- Chinese govt’s Central Economic Work Conference in Beijing, day 1
- Intl Energy Executive Forum on the energy transition, Beijing, day 3
- CCTD’s weekly online briefing on Chinese coal, 15:00
Thursday, Dec. 12:
- Chinese govt’s Central Economic Work Conference in Beijing, day 2
Friday, Dec. 13:
- China’s weekly iron ore port stockpiles
- Shanghai exchange weekly commodities inventory, ~15:00
--With assistance from Katharine Gemmell and Kathy Chen.
(Updates with other commodities in fifth and sixth paragraphs)
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