China surprised the market in late October by announcing an increase in export taxes on a wide range of products. The new tariffs became effective from November 1. The move was part of the government's ongoing strategy to rein in certain energy-intensive and resource-intensive sectors of its economy and to reduce its trade surplus, and further which came in at 15.3 billion dollars in September, its second-largest ever. For the metals sector, export taxes for primary aluminium, copper and nickel have been raised to 15 percent from the previous rates of 5 percent, 10 percent and 2 percent, respectively. Tariffs were also raised for ferro-alloys, and some steel semi-finished products and raw materials. The higher tariffs are intended to be a deterrent to exporters and are designed to encourage producers and merchants to keep commodities in China for domestic use. Economic exporting will now require a higher price differential between the domestic and international markets.
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