Aluminum Soars as China Scraps Tax Sweetener That Fueled Exports
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Aluminum jumped on Friday after China said it would cancel a tax rebate that’s helped fuel a decades-long boom in exports and shielded an industry prone to overcapacity.
Futures in London jumped as much as 8.5% following the announcement from the country’s Ministry of Finance. China’s aluminum industry historically has exported significant amounts of the metal as semi-finished products, which are used in value-added manufacturing or simply re-melted into commodity-grade shapes.