SHANGHAI, Aug. 25 (SMM) -- According to the latest data from China Customs, China’s exports of primary aluminum were 17.9 kt during July, up 12.16% YoY, and up 163.10% compared with June’s 6.8 kt. YTD exports from January to July were 50.9 kt, down 58.81% YoY.
Although data shows primary aluminum exports in July surged, SMM sources report that there was no possibility of profitable aluminum exports during July based on the monitoring of SHFE and LME aluminum prices, but the SHFE/LME aluminum price ratio was on an upward track during this period, a signal of widening losses from aluminum exports. In this context, SMM believes there is high possibility that re-export trade was responsible for soaring exports of primary aluminum in July.
Data shows that total imports of primary aluminum were 112.5 kt during 1H 2011, and approximately 60% of imports were goods in bond, and SMM believes there are large amounts of aluminum ingot duty unpaid in bonded warehouses, so the re-export of aluminum ingot in bonded warehouses contributed to soaring exports of primary aluminum in July.