SHANGHAI, Jun 12 (SMM) – China's export of unwrought aluminium and aluminium semis in May reached a record high since the start of 2015 to stand at 485,000 mt, showed China Customs data. This was up 5.4% from May 2017.
Total exports for the first five months of the year grew 11.4% on the year and registered 2.21 million mt.
SMM believes that exports of Chinese aluminium products were bolstered by restrictions on Rusal brand aluminium products in US sanctions a month ago.
A record low SHFE/LME aluminium price ratio at 6.0 in early May that resulted from soaring prices of aluminium overseas, also accounted for the rise in China's aluminium output.
Flat-rolled aluminium products accounted for the majority of the increase in exports, including aluminium sheets and casting rolled coil, SMM learned. Exports of aluminium extruded products also increased in May.
According to SMM's estimates, China's export of aluminium sheets stood at 260,000 mt, aluminium foil at 108,000 mt, and extruded products at 63,000 mt in May.
We expect China's export of unwrought aluminium and aluminium semis to dip in June as the US postponed sanctions Russia, and as the SHFE/LME aluminium price ratio rebounded to around 6.5 from mid-May.
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