[Al Semis Export] Why China Aluminum Semis Exports Keep Growing?

Published: Jun 29, 2015 10:44

Save

China’s aluminum semis exports soared 43.7% year-on-year January-May, despite high SHFE/LME aluminum price ratio in Q2. What’s behind the sustainable growth?

SHANGHAI, Jun. 29 (SMM) –China’s aluminum semis exports soared 43.7% year-on-year January-May, despite high SHFE/LME aluminum price ratio in Q2. What’s behind the sustainable growth?

SMM analyzes this divergence by export model.

China’s exports of aluminum semis exports can be divided into “normal” and “masked” exports.

Normal exports of high-end aluminum semis are mostly under long-term contracts and priced as the LME aluminum price + processing fees. High processing fees mean that the rise in SHFE/LME aluminum price ratio has little impact on short term profits. Such exports thus hold largely stable.

Exports of low-end aluminum semis are priced as the SMM aluminum price + processing fees. A growing number of Chinese firms prefer this model, which insulates their margins from the changes in SHFE/LME aluminum price ratio.

Both traders and processors engage in masked exports. Traders, who gain profit when the SHFE/LME aluminum price ratio is low, have little interest in exporting at the current high ratio. Processors that engage in masked exports, on the other hand, can cover losses triggered by a rise in the SHFE/LME aluminum price ratio and falling overseas aluminum premiums by hiking processing fees.

China exported 360,000 tonnes of aluminum semis in May, up 34.1% from a year ago, customs data showed. Year-to-date exports through May hit 1.81 million tonnes.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.

China aluminum semis export China aluminum semis export May 2015

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

10 hours ago

SHFE Zinc Center Continued to Move Lower Today, with Focus on Interest Rate Decisions Outside China and China’s Social Inventory [SMM Brief Commentary on Zinc Futures]

[SHFE Zinc Continued to Decline Today, with Focus on Overseas Rate Decisions and China Social Inventory] The most-traded SHFE zinc 2605 contract opened at 23,470 yuan/mt. After the opening, bulls and bears engaged in fierce competition, and SHFE zinc fluctuated rangebound below the daily average line. During the session, SHFE zinc touched a high of 23,475 yuan/mt and a low of 23,260 yuan/mt, and finally closed down at 23,345 yuan/mt, down 110 yuan/mt, or 0.47%. Trading volume increased to 55,115 lots, and open interest increased by 3,955 lots to 95,164 lots.....

10 hours ago

11 hours ago

Data: SHFE, DCE market movement (Mar 18)

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 18 Mar , 2026

11 hours ago

18 hours ago

LME Drove SHFE Lower, SHFE Zinc Declined [SMM Zinc Morning Comment]

[SMM Zinc Morning Comment] Overnight, the most-traded SHFE zinc 2605 contract opened at 23,680 yuan/mt. In early trading, SHFE zinc briefly rose to a high of 23,685 yuan/mt, after which bears added to their positions and SHFE zinc fluctuated downward all the way, hitting a low of 23,440 yuan/mt near the close. It finally closed down at 23,455 yuan/mt, down 275 yuan/mt, or 1.16%. Trading volume fell to 39,416 lots, and open interest increased by 10,738 lots to 91,209 lots.

18 hours ago