Bauxite
Alumina
China imported 479,000 mt of alumina in September, up 52.16% MoM. YTD imports through September were 3.72 million mt, up 212.29% YoY.
Primary Aluminum
China imported 40,200 mt of primary aluminum during September, down 34.42% MoM, but up 270.46% YoY. The SHFE/LME aluminum price ratio remained above 8.0 throughout August and into early September and should have favored primary aluminum imports. However, high premiums for spot primary aluminum overseas and a single aluminum ingot import channel to China prevented primary aluminum in sufficient amounts from arriving in China. Severe primary aluminum oversupply in China is also depressing sales of imported aluminum ingot. A large proportion of imported aluminum ingot is now used in the processing trade using imported materials.
Aluminum Semis
According to China Customs, China exported 240,000 mt of aluminum semis during September, unchanged MoM, but up 4.35% YoY. The SHFE/LME aluminum price ratio was above 8.0 throughout August, unfavorable for aluminum semis exports, but sluggish domestic consumption and overcapacity of aluminum semis in domestic markets forced many domestic producers to turn to export markets. A recovery of US economy and emerging markets provide opportunities for domestic processors, but the high SHFE/LME aluminum price ratio is squeezing profits at exporters, so many domestic processors are trying to improve the quality of their products in order to increase profits.
For queries, please contact Michael Jiang at michaeljiang@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn