Aluminum prices on the LME (London Metal Exchange) rose more than 8% last week, after China’s Ministry of Finance announced that it will eliminate the 13% tax rebate for aluminum exports as of December 1. This will have repercussions on the global aluminum market. In the short term, the cancellation of the rebates will make Chinese aluminum more expensive on the international market and could reduce export volumes. Over the past two decades, Chinese aluminum exports have increased significantly.

Experts point to this rise as a strategy by the Chinese to demonstrate their crucial role in global markets and their ability to influence prices and demand. Donald Trump’s victory has already triggered trade tensions and China will use its position as leverage in trade negotiations.

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