[SMM Analysis] in May 2019, the export of aluminum profiles and bars increased by more than 10 per cent compared with the previous month.

Exports of aluminum profiles and bars totaled 96400 tons in May 2019, up 10.45 percent from April and 18.83 percent from a year earlier, according to figures released by the General Administration of Customs. The aluminum profiles and bars mentioned here include five tax codes: 76041090, 76042100, 76042990, 76041010 and 76042910.

In May, the export of aluminum profiles and bars increased by more than 10% compared with the previous month, for three main reasons:

Source: general Administration of Customs, SMM

1. The devaluation of the RMB was also one of the more common factors to stimulate exports in May, and aluminum profile exports were also affected.

two。 Domestic competition is fierce, domestic aluminum processing manufacturers gradually open up overseas markets. It is understood that the domestic market for aluminum profiles is close to saturation and fierce competition, and they often fight price wars to grab orders by holding down processing fees, thus narrowing the profit margin of domestic business and opening up overseas markets to become the choice of domestic large and medium-sized aluminum profile plants. In addition, because of the low level of domestic processing fees, even if costs such as tariffs are added, exports abroad still have greater cost advantages. This is also one of the advantages of opening up overseas markets.

3. The economic exchanges and strategic cooperation between China and ASEAN create conditions for aluminum profile export growth, and the development of economic policies such as "Belt and Road Initiative" creates opportunities for aluminum profile exports. Through analysis and investigation, SMM found that most of the aluminum profiles and bars are exported to Southeast Asia, Africa and European countries. Most of the profile exporters are interested in the potential demand for aluminum profile products in the process of economic development of ASEAN countries and countries along Belt and Road Initiative, as well as the preferential policy conditions provided by China in its economic exchanges with these countries.

Although the United States and Vietnam, two major aluminum exporters, have adopted anti-dumping policies against Chinese aluminum profile products, and the United States raised the tariff rate on some aluminum products by 15 percent on May 10, the export of aluminum profiles and bars is actually not much involved. In addition, the United States has adopted anti-dumping against aluminum profiles in China for three years, and now it has imposed tariffs on US $200 billion in goods to China again, which has a limited impact on the marginal impact on the export of aluminum profiles. However, the amount of aluminum profiles exported to Vietnam accounts for only about 1 to 10 of China's total aluminum profile exports. Therefore, the actual impact of Vietnam's anti-dumping measures on domestic aluminum profile exports is also relatively limited. Under the increasing trend of foreign aluminum profile demand, The total export volume of aluminum profiles and bars in China has not been significantly affected.