US tariffs, weak auto market to further lower aluminium alloy wheel exports

SHANGHAI, May 30 (SMM) – China exported 70,400 mt of aluminium alloy wheels in April, down 9.6% on the month and down 11.6% on the year, as poor overseas demand and trade tensions extended weakness in exports. 

The latest data from China Customs showed that exports in January-April lost 4.4% from a year ago, to 292,200 mt. 

In April, some 44% of Chinese exports of aluminium alloy wheels entered the US, standing at 31,000 mt, down 16.2% from the previous month. Exports to the US in the first four months of the year amounted to 135,000 mt. 

The US, the top export destination for China’s aluminium alloy wheels, imposed additional tariffs of 25% on Chinese aluminium wheel hubs on May 1. This, together with the slowdown in the auto market, will further depress exports in the months ahead. 

Back to the third quarter of 2018, concerns over additional US' tariffs slated to take effect at the start of 2019 boosted domestic exports of aluminium alloy wheels, and kept the reading above 80,000 mt per month in July-December. 

Exports extended the increase in January, to stand at 90,200 mt, up 11.63% from December and up 10.95% from January 2018, showed data from China Customs. Exports in February dipped to the lowest in 5 years, standing at 53,700 mt.