SHANGHAI, Aug 2 (SMM) – China's exports of aluminium foil decreased 7.29% from May and stood at 115,900 mt in June, weighed by a seasonal lull and higher price ratios of SHFE/LME aluminium, the latest customs data showed. Export volume of products under five HS codes all slid month on month in June.
On a yearly basis, exports stood 2.1% higher in June, after they climbed 11.75% in May.
A slow season started to impact the aluminium foil market in mid-June as orders from home appliance and construction sectors weakened. Production and sales of aluminium foil for air-conditioner use, household use, and food packaging slid from May, with shrinking export orders.
SMM expects the seasonal lull to extend into July and drag on aluminium foil orders both domestically and from overseas. This drove some producers to cut scheduled production for August, SMM learned.
In the first half of this year, however, domestic exports of aluminium foil hit a record high of 670,300 mt, up 8% from January-June of 2018.
India, Thailand, South Korea, the United Arab Emirates, and Saudi Arabia remained the top five export destinations of Chinese aluminium foil in the first half of this year, accounting for 63% of the total export volumes.
Overall demand for Chinese light gauge foil and household-use foil remained brisk from India, Thailand, and Indonesia.
