Imports of Unwrought Aluminium Alloy Fell MoM, while Exports Increased Nearly 50% MoM

SHANGHAI, Aug 24 (SMM) - Customs data showed that China imported 102,900 mt of unwrought aluminium alloy in July 2022, a year-on-year increase of 17% and a month-on-month decline of 13%. The imports totalled 770,700 mt from January to July, up 34.5% on the year. In terms of export, China exported 25,500 mt of unwrought aluminium alloy in July, up 179% from the previous year and 49.9% from the previous month. From January to July, the total exports stood at 126,300 mt, a year-on-year growth of 35.7%.

The top three suppliers of unwrought aluminium alloy imports in July were Malaysia, South Korea and Thailand, the imports of which accounted for nearly half of the total volume. Among them, the import volume from Malaysia remained the largest, which was 30,600 mt, down 10,000 mt from June; imports from South Korea amounted to 10,700 mt, an increase of 2,000 mt from June. It should be pointed out that the imports from South Korean returned to more than 10,000 mt, but was still lower than the normal level; imports from Thailand increased slightly from June by 1,300 mt to 10,200 mt.. In addition, July marked the third consecutive month when the imports from Russian Federation hovered around 10,000 mt. Import volume from other countries such as Vietnam and India declined to varying degrees compared the the month before. As for exports, China exported 7,700 mt of unwrought aluminium alloy to Japan in July, which was flat from that in June, and the exports to South Korea increased to 6,300 mt

China’s top three importing provinces of unwrought aluminium alloys in July were Zhejiang, Guangdong, and Jiangsu, accounting for more than 70% of the total, though the ratio was slightly lower than that in June. Specifically, the imports of Zhejiang, Guangdong, and Jiangsu provinces stood at 43,900 mt, 23,700 mt, 7,000 mt respectively, accounting for 43%, 23%, and 7% respectively. Overall, the domestic imports of unwrought aluminium alloy in July dipped month-on-month but rose year-on-year. At the same time, the exports climbed year-on-year and month-on-month. In terms of imports, most of the aluminium alloy ingots that arrived at ports in July were under the orders placed after April. Considering that new orders have shrunk after April due to sustained import losses, the arrivals in July and August are expected to dwindle. Since mid-July, the aluminium prices, which had been falling for nearly two months, finally rallied, and the domestic prices of ADC12 secondary aluminium alloy also began to rise. The import losses gradually eased and the profits emerged. Meanwhile the import window was also opened since early August for half a month. As of August 23, imported ADC12 secondary aluminium alloy from Malaysia was quoted at $2,400/mt, up from $2,100/mt in July, and the import losses were once again expanded to 300-400 yuan/mt. However, traders are bullish on the market outlook, so the new orders have been rising recently. It is expected that the imported arrivals of aluminium alloy ingots after September will be more than those in July and August.