SHANGHAI, Sept. 23 (SMM) -- According to China Customs, China’s exports of aluminum semis were 270 kt during August, up 31.8% YoY. Exports of aluminum profile were 77 kt, up 9.3% YoY, while exports of aluminum plate, sheet and strip were 128.8 kt, up 54.57% YoY.
Aluminum semis exports in August fell by 40 kt from July, down 12.9% MoM. Exports of aluminum profile were at July level, exports of aluminum plate, sheet and strip were down 29.8 kt or 18.8% MoM, while exports of aluminum foil were generally flat at July level.
Exports of aluminum profile and foil remained stable, but exports of aluminum plate, sheet and strip declined significantly due to weak overseas machinery and manufacturing sectors. Aluminum processors said the proportion of aluminum semis exports plummeted since the start of August, and monthly exports by many processors even decreased from previous 1,000 mt or so to 100 mt, with some processors even reporting no export business.
There are three reasons behind lower exports of aluminum semis. First, the SHFE/LME aluminum price ratio remained at 7.5, causing lower profits from exporting aluminum semis at domestic producers, and some producers offered quotations for overseas customers based on SHFE aluminum prices instead of LME aluminum prices. Second, the European and US debt issues resulted in a slowdown in European and US economic growth, and their demand weakened in response. Third, previously soaring exports of aluminum semis were largely due to expectations that China will eliminate or cut export tax rebates for aluminum semis, which resulted in a large number of orders made before any changes in policy, so it is reasonable aluminum semis exports fell in August.