SHANGHAI, May 13 (SMM) –

Bauxite
China’s bauxite imports during March plunged. Only 480,000 mt of Indonesian bauxite was imported, tumbling 77% YoY. Capacity cuts at alumina producers which rely on imported ore have grown to 2.7 million mt/yr so far this year. However, alumina supply remains sufficient since the cuts in alumina capacity are in response to production cuts at aluminum smelters. SMM data reveal that over 1.7 million mt/yr in aluminum capacity was taken offline during the first four months of this year. Assuming 2 mt of alumina is needed to produce 1 mt of aluminum, cuts in aluminum capacity have created approximately 3.4 million mt/yr in surplus alumina capacity.      

Alumina
China imported 376,900 mt of alumina during March, spiking 93.12% YoY, but down 18.91% MoM. The MoM decline was due in large part to growing port inventories. In addition, Chinese aluminum smelters preferred to purchase domestic alumina, whose prices dropped, also cutting demand for imported materials.  

Aluminum 
China imported 41,000 mt of primary aluminum during March, soaring 117% YoY, but down 28% MoM, according to China Customs. Three factors contributed to the MoM decline. First, the SHFE/LME aluminum price ratio fell from 7.8 in February to 7.5 in March, unfavorable for imports. Second, premiums for primary aluminum in international markets drifted higher to USD 370/mt, up from USD 320/mt, which also removed any incentive for imports. Third, a weaker RMB was also unfavorable for imports.  

Aluminum Semis
China’s aluminum semis exports during March jumped by 25.9% YoY, to 320,000 mt, according to China Customs. The SHFE/LME aluminum price ratio began to fall in February, favorable for exports.

Extrusion exports increased by 10.41% YoY, to 46,000 mt. Plate/sheet and strip exports surged by 41.67% YoY, to 182,000 mt. Foil exports, by contrast, fell by 1.89% YoY to 68,000 mt.  

Liaoning Province exported 79,000 mt of aluminum plate/sheet and strip during March. Exports of aluminum plate/sheet and strip to Vietnam totaled 77,000 mt. However, since Liaoning Province is not a major production region of aluminum plate/sheet and strip, and since Vietnam is not a major importer of such products, SMM believes exports in disguised forms may have accounted for a large proportion of this trade.