SHANGHAI, Jun 25 (SMM) – China’s exports of aluminium plate/sheet and strip is likely to dip to 230,000 mt in June with the SHFE/LME price ratio recovering to around 6.5 from May, SMM believes.
In May, China exported 485,000 mt of unwrought aluminium and aluminium semis, highest level since the start of 2015. Aluminium plate/sheet and strip accounted for the majority of the exports.
Such high exports were bolstered by restrictions on Rusal’s products following the US sanctions in April. A record low SHFE/LME aluminium price ratio at 6 in early May that resulted from the soaring LME prices also accounted for the increase in exports.
Just last week, the US Commerce Department determined that Chinese common alloy aluminium sheet products were sold in the US at less than fair value and will be subject to preliminary anti-dumping duties of 167.16%.
In January, China’s aluminium plate/sheet and strip exports stood at 205,000 mt. The export window remained open in February and March as the US postponed its decision on countervailing duties to April 17, from February 1. This resulted in a 50% year-on-year increase in February’s exports and another jump in March’s volumes to 235,000 mt.
Exports of aluminium plate/sheet and strip in April, however, were flat at about 240,000 mt, despite low SHFE/LME price ratios. This was because the countervailing duties of up to 113% to be levied on Chinese common alloy aluminium sheet to the US.
A final determination in the countervailing duty investigation is scheduled to be announced on August 30, according to the US Commerce Department.