According to Chinese Ministry of Finance, China will halt imposing import duties on original alumina materials but levy an initial tax of 15% on aluminum sticks and bar exports.
 
This new regulation will come into effect from August 1, 2007, replacing the current duty rate of 5% on alumina material.

This move is within China’s efforts to prevent exporting natural resources which required huge energy and pollution threat to exploit, and encourage the import of raw materials.

The new import duty scheme is also considered part of energy conservation strategy for sustainable development as aluminum is one of the most energy-consuming industry.

Currently the price of aluminum in China domestic market stands at 2,630 USD per ton, cheaper than that on international market which aluminum is traded at 2,800USD per ton. Chinese aluminum producers have sufficient capacity to satisfy domestic demand.

Last year, many aluminum producers decided to extend their production, taking advantage of low cost for alumina material and high selling price of aluminum products.