China Aluminium Imports Fell 73.1% YoY in April, While Exports Surged 640%

SHANGHAI, May 23 (SMM) - According to customs statistics, China’s import volume of primary aluminium was 34,877 mt in April 2022, a year-on-year decrease of 77.6% and a month-on-month decrease of 11.3%. The cumulative import volume from January to April 2022 was 131,300 mt, a year-on-year decrease of 73.1%. Export volume was 32,034 mt in April, a decrease of 24.2% month-on-month and an increase of 64 times year-on-year. From January to April, export totalled 105,000 mt, up 360% YoY. In 2022, due to the tension between Russia and Ukraine, the global trade of aluminium ingots was affected, and the export of Rusal to Europe was limited to a certain extent. At the same time, due to energy problems in Europe, aluminium smelters reduced production on a large scale, which intensified the market's demand for overseas aluminium supply. Concerns about shortages allowed LME aluminium to repeatedly set new highs. In March, the LME aluminium price exceeded $40,000/mt, a record high, and China's export volume of aluminium ingots also exceeded 40,000 mt, reaching a historical peak in the past 10 years. In terms of the cumulative export volume from January to April 2022, aluminium ingots exported to Europe accounted for more than 70% of the total export volume.
 On the import side, starting from the second quarter of 2020, the import window of aluminium ingots continued to open, and the import profit remained above 1,000 yuan/mt. Therefore, the import volume of aluminium ingots increased rapidly. In 2020, the import volume of aluminium ingots increased to 1.07 million mt, and stood at 1.58 million mt in 2021. From the end of 2021, the import window was closed, and the monthly import loss was 2,000 yuan.mt. In the first quarter of 2022, domestic aluminium smelters gradually resumed production, and the domestic pandemic hurt demand, which coupled with expanding import losses, caused import volumes to begin to shrink. In the first four months of this year, imports totalled 130,000 mt, a year-on-year decrease of 73%. The import and export of aluminium ingots are mainly driven by market demand and profits at home and abroad. The supply of  aluminium in Europe is still limited, boosting China’s exports to a certain extent. However, some orders are delayed or reduced due to the pandemic. Therefore, it is expected that there will be a certain drop in exports on a month-on-month basis.