SHANGHAI, Nov. 3 (SMM) –China imported 10,600 mt of primary aluminum in September, down 11,200 mt MoM, but up 97.93% YoY, customs data showed.

The MoM decline is due to lower SHFE/LME aluminum price ratio. In September, tolling trade remained the major trade mode, and aluminum ingot imported not via tolling trade was rarely sold in China’s domestic market. Aluminum premiums in Japan fell to USD 90/mt in late October, down USD 10/mt from August. Despite falling aluminum premiums overseas, supply glut in domestic market and a 17% VAT will offer little incentive to import. This, combined with further decline in the SHFE/LME aluminum price ratio, means that imports will continue falling in October.