A senior official with the China Nonferrous Metals Industry Association (CNMIA), who wished to remain anonymous, said that the government might reduce or cancel export tax rebates on copper products. The government's decision will depend on the amount of exports and China's trade surplus in March.

The CNMIA has lobbied the Central Government not to further reduce copper product export tax rebates, as the former tax rebate policy has already successfully reduced copper product exports (excluding copper tube) in the first two months of the year, according to the official.

China exported 70,756 tons of copper products January and February, down 9.7 percent from the previous year, according to the General Customs Administration.

China reduced copper product export tax rebates from 13 percent to 5 percent on Sept. 15, 2006.

Aluminium products are also to have their export tax rebates reduced or canceled in near future, he said.

China exported 255,800 tons of aluminium products in the first two months of this year, up 104.6 percent from last year. The aluminium product export tax rebates currently range from 8 percent to 10 percent.

"The government is determined to curb China's huge trade surplus and reduce over-investment in some sectors by restraining exports. It is very likely that the government will release a new policy on export tax rebates to cover most nonferrous metal products at the end of April or in early May," the official claimed.

China's fixed-asset investment in the nonferrous metals industry grew by 56.4 percent in the first two months of this year, while the average growth rate in urban investment stood at 23.4 percent during this period, according to statistics released by the National Bureau of Statistics.

The government is also considering increasing the export tax for most primary nonferrous metal products, including refined copper and aluminium and nickel, if there is not a substantial reduction in exports after the imminent export tax rebate policy is released, he said.

The export tax on electrolytic aluminium was increased to 15 percent on Nov. 1, 2006 and that of refined copper increased to 10 percent.