We foresee the following global aluminum foil supply and demand impacts due to this policy shift:
The production cost for directly exported items such as small household aluminum foil rolls, sheets, hookah foil, and hairdressing foil from China is set to rise by 13-15%.
Factories importing large aluminum foil rolls from China to manufacture small household rolls, paper towels, hookah foil, and hairdressing foil will experience a 13-15% increase in production costs.
The reduction in China's aluminum material exports will decrease domestic demand for aluminum ingots, potentially lowering Chinese aluminum prices. In contrast, increased demand for aluminum ingots in other countries to compensate for reduced Chinese exports may raise their aluminum prices.
The export tax rebate for aluminum foil food containers remains, leaving their prices unchanged.
In conclusion, China's withdrawal of export tax rebates is likely to increase global supply and retail prices for aluminum foil products, including in China, without altering China's dominant position as a supplier of aluminum foil rolls, sheets, hairdressing foil, and hookah foil.
Given this context:
Effective immediately, our company will increase the prices of exported small aluminum foil rolls, sheets, hairdressing foil, and hookah foil by 13%.
Orders with deposits received before November 15, 2024, will be honored with guaranteed quality, pricing, delivery, and superior after-sales service.
Aluminum foil containers, silicone oil paper, and cling film remain unaffected.
We appreciate your understanding and support.
Zhengzhou Eming Aluminium Industry Co., Ltd.
November 16, 2024
