Dear customers:
The cost of aluminum foil exported from Zhengzhou Eming Aluminium Industry Co., Ltd will go up by around 13% from 16th, November 2024 because of the following reasons:
- China has always implemented a 13% export tax rebate subsidy policy for aluminum foil products. Aluminum foil companies have already calculated the tax rebate subsidy into the supply cost when quoting.
- On the afternoon of November 15, 2024, the Chinese government suddenly announced the cancellation of the export tax rebate policy for aluminum foil and other products that had been implemented for decades.
- After the cancellation of the tax rebate subsidy policy, the supply cost of Chinese aluminum foil exporters directly increased by about 13~15%.
This policy change will have the following impacts on global aluminum foil supply, demand, and consumption in the future.
For China:
The direct production cost of household aluminum foil rolls, pop up foil sheets, hookah foil, hairdressing foil, and other products directly produced and exported from China will increase by 13%~15%.
For Those Countries Import Aluminum Foil Raw Materials from China:
For aluminum foil distributors or dealers who originally imported large rolls of aluminum foil from China and produced small-package household aluminum foil rolls, pop-up foil sheets, hookah foil, hairdressing foil and other products in their own countries, the direct production cost increased by 13%~15%.
For Those Countries Wholesale Aluminum Foil Products From Other Countries Outside China:
For aluminum foil distributors or dealers who originally imported aluminum foil jumbo rolls, small rolls of aluminum foil from countries other than China or used domestically produced raw materials to produce small-package household aluminum foil rolls, pop-up aluminum foil sheets, hookah foil, hairdressing foil and other products, their production costs are uncertain. After China canceled the export tax rebate for aluminum products, China's aluminum exports will decrease, thereby reducing China's demand for aluminum ingots and causing China's aluminum prices to fall. On the contrary, countries outside China will increase their demand for aluminum ingots to fill the gap left by China's reduced aluminum exports, thereby pushing up their aluminum prices. This has formed an aluminum price gap between China and foreign countries in the opposite direction, which in turn affects the production costs of each region, thereby affecting their sales prices.
For Aluminum Foil Containers:
This time, China did not cancel the export tax rebate subsidy for aluminum foil trays. Suppliers who originally imported aluminum foil raw material rolls from China to produce aluminum foil pans in their own country will directly increase their raw material costs by about 13% because their raw material rolls have also cancelled the tax rebate subsidy. Compared with Chinese domestic products, their price competitiveness has weakened.
In summary, China's cancellation of export tax rebates will ultimately only push up the supply price and terminal retail price of aluminum foil products in the world (including China), but it cannot change China's market position as the main supplier of aluminum foil paper, pop up foil sheets, hairdressing foil, and hookah foil products in the world.
Based on the above situation, Zhengzhou Eming Aluminium Foil Company implements the following rules:
- From now on, the price of aluminum foil products exported by our company will be increased by 13%.
- For orders received before November 15, 2024, our company promises to supply with guaranteed quality, guaranteed price, guaranteed delivery date, and guaranteed quality after-sales service.
- Products such as aluminum foil containers, silicone baking paper, and plastic wrap are not affected.
Thank you for your understanding and support!
