China Aluminum Semis Exports Unlikely to Tumble in Short Run, Despite Two Negative Factors

SHANGHAI, Jun. 1 (SMM) – Shanghai Metals Market sees no near-term slump in China’s aluminum semis exports, despite higher SHFE/LME aluminum price ratio and tumbling aluminum premiums overseas. Here is why.

 

First of all, while traders might cut “disguised” exports – semis being remelted at destination to become a substitute for primary metal, it remains to be seen whether processors will follow suit. 

 

Besides, despite small losses, exporters of low-end products remain keen to sell overseas against poorer prospects domestically. 

 

Export rebates make exports of high-end products more lucrative than selling domestically.    

 

China exported 380,000 tonnes of aluminum semis in April, up 40.74% from a year ago and 26.67% on the month, customs data showed.