China’s Aluminum Imports Down 31.32% YoY in July 2014

SHANGHAI, Sept. 3 (SMM) – China imported 14,100 mt of primary aluminum in July, down 31.32% YoY and 4.08% MoM, according to China Customs.

 

The SHFE/LME aluminum price ratio kept falling and dropped below 7.0 at the end of July, adding to import costs. In addition, aluminum premiums overseas are rising steadily, also unfavorable for imports. Japanese aluminum buyers agreed to pay premiums of USD 400-408/mt over London Metal Exchange prices for shipments in Q3, up 8-12% from Q2. Aluminum premiums for Japanese buyers are likely to show further slight increases for Q4 shipments since premiums for buyers in the US and Europe are expected to rise to USD 440-450/mt for Q4 shipments and demand from Japan remains strong. Japan is Asia's largest aluminum importer and the premium for aluminum shipments it agrees to pay each quarter over the LME cash price sets the benchmark for Asia.