Gradual recovery in domestic‑overseas price spread; net primary aluminum imports set to rise

SMM News, August 21:

On the import side, data from the General Administration of Customs show that domestic primary aluminum imports stood at approximately 185,000 tonnes in July 2026, up 10.8% month‑on‑month and down 25.4% year‑on‑year. Cumulative domestic primary aluminum imports totalled around 1.472 million tonnes over January‑July 2026, a year‑on‑year decline of 1.8%.

On the export side, per General Administration of Customs statistics, domestic primary aluminum exports reached roughly 32,000 tonnes in July 2026, down 17.9% month‑on‑month and 23.2% year‑on‑year. Cumulative primary aluminum exports from January to July 2026 were about 146,000 tonnes, representing a year‑on‑year increase of approximately 14.1%.

On the net‑import side, domestic net imports of primary aluminum amounted to 154,000 tonnes in July 2026, rising 19.4% month‑on‑month and falling 25.9% year‑on‑year. Cumulative domestic net imports of primary aluminum for January‑July 2026 came in at around 1.326 million tonnes, down 3.3% year‑on‑year.

(The above import and export data are based on HS codes 76011090 and 76011010)

By source country, primary aluminum imports rose by 18,000 tonnes in July, mainly driven by higher supplies from Russia, with Russian‑origin imports climbing by 24,000 tonnes month‑on‑month. By trade mode, combined imports via goods in bonded customs special supervision zones and goods entering/exiting bonded supervision premises increased by 24,000 tonnes month‑on‑month. On the export front, July shipments were mainly destined for India, South Korea and the United States, together accounting for roughly 70% of total exports.

Prior to June, import losses for primary aluminum widened, dragging down domestic primary aluminum imports while boosting re‑export trade; net imports fell below 130,000 tonnes in June. Since June, however, the domestic‑overseas price ratio has rebounded sharply, and import losses have narrowed substantially, from around RMB 7,600 per tonne to roughly RMB 2,850 per tonne. The processing‑trade manual window has opened, and primary aluminum imports are expected to trend higher going forward.