MARKET TALK: China Aluminum Output Not Affected By Tax Hike

Latest data on aluminum production from International Aluminum Institute shows acceleration of Chinese primary production, with introduction of higher tax rates on aluminum exports in China having no effect on output, says JP Morgan. This reflects attractive value-added tax rebates on semi-manufactured exports, strong demand internally for aluminum. Says although output accelerating in and outside China, demand still strong so inventories will only slowly accumulate to level that will weigh on LME prices. LME 3-month aluminum trades at $2,775/ton, down $19 vs Tuesday PM kerb.