SMM analysis of China’s unwrought aluminium alloy imports in December 2023

According to customs data, China’s unwrought aluminium alloy imports were 112,900 mt in December 2023, up 22.3% YoY and 1% MoM, bringing up total imports in 2023 to 1.1325 million mt, down 11.4% YoY. In December 2023, China’s unwrought aluminium alloy exports were 19,700 mt, down 3.1% YoY but up 25.6% MoM, bringing up total exports in 2023 to 241,500 mt, up 7.3% YoY.
The top five import sources in December were Malaysia (47,100 mt), Thailand (12,500 mt), Vietnam (10,000 mt), Russia (8,500 mt) and South Korea (6,100 mt), accounting for 42%, 11%, 9%, 8% and 5% respectively, basically the same as November.
In terms of exports, unwrought aluminium alloy exports in December inched to 19,700 mt. The increase was mainly contributed to exports to South Korea mounting to 5,600 mt. The largest export destination was still Japan, with exports of about 8,700 mt, accounting for 44% of China’s total exports. The trade method was mainly based on process with supplied and imported materials.
In December 2023, the top five unwrought aluminium alloy import provinces were Zhejiang province (52,000 mt), Guangdong province (17,000 mt), Jiangsu province (13,000 mt), Fujian province (8,000 mt) and Hebei province (6,000 mt), accounting for 46%, 15%, 11%, 7% and 5% respectively, and the total proportion of the above provinces was some 85%.
Overall, unwrought aluminium alloy imports in December continued to maintain growth on both MoM and YoY basis, while its exports also inched higher. Most of aluminium alloy ingots arriving at Chinese ports in December were orders from October and November. In October, aluminium price retraced down after a surge. At the same time, imported and domestic ADC12 prices stabilised. Therefore, profits of imports were 200-400 yuan/mt. Aluminium price kept dipping after November, but overseas quotations for aluminium alloy ingots rose to around $2,300/mt due to rising raw material prices. Therefore, profits of imports gradually returned to a negative territory. After December, a further aluminium scrap supply tightness and aluminium price gain fed into a rapid rise in domestic ADC12 price, reopening the import window. Expected arrival volume at Chinese ports in January will be some 110,000 mt.