SHANGHAI, Mar. 25 -- According to statistics from Fuzhou Customs, Fujian's exports of aluminum semis were 26 kt during the first two months, up 77.2% YoY. Market players believe the significant growth in Fujian's exports of aluminum semis was an indication of improving global aluminum semis downstream industries, including automobile and construction sectors.
Fujian's aluminum semis was mainly exported to the Association of Southeast Asian Nations (ASEAN), the US, and Nigeria, with exports of aluminum semis to ASEAN, the US, and Nigeria of 8 kt, 4 kt, and 3 kt, respectively, up 1.3 times, 60.7%, and 1.1 times, with total exports to three countries accounting for 61.5% of Fujian's total exports of aluminum semis.
Market insiders said the improvement in global automobile, construction, and other aluminum semis downstream sectors, as well as growing international investor confidence helped drive up Fujian's exports of aluminum semis.
In addition, domestic aluminum ingot prices declined, raising the export cost advantage. As an important raw material for aluminum semis processing, aluminum ingot prices affect aluminum semis production costs directly. Average SHFE aluminum prices were RMB 13,961/mt during January, down 18.2%, while average LME aluminum prices were equivalent to RMB 15,525/mt during the same period. Domestic prices for aluminum ingot were lower than prices in other countries, which reduced production costs for aluminum semis to some extent, leaving opportunities to aluminum semis exporters.
Fuzhou Customs suggested that relevant departments should guide enterprises to strengthen research and development efforts, to enhance innovation, to encourage the production of aluminum plates, strips, foils, large aluminum alloy profiles used for rail transportation, and other high value-added products, to improve the enterprise's core competition in order to cope with international demand changes, to strengthen the tracking and monitoring international aluminum prices, and to enhance China's position international aluminum price negotiations.
(Edited by SMM)