SHANGHAI, Apr 1 (SMM) – The impact from the coronavirus pandemic on China’s aluminium exports is mounting as greater part of the world comes under lockdown to stop the spread of the virus.
On Wednesday, Vietnam, a major buyer of Chinese aluminium, entered into a 15-day period of nationwide isolation. Residents are required to stay at home and can only go outside for “essential needs,” such as food, medicines, urgent medical services or to go to work at companies permitted by the government to remain open.
Vietnam’s move came after much of the world, including European countries and the US—who are also major importers of Chinese aluminium, went into virus containment lockdowns, slowing business production and keeping people at home.
Data from China customs showed that about 11% of China’s exports of aluminium profiles, bars and rods, 4.8% of China’s exports of aluminium plates, sheets and strips and 2.8% of China’s exports of aluminium foil were destined to Vietnam last year.
The 15-day isolation, which is expected to limitedly affect actual demand for aluminium products from Vietnam, comes just as global demand has been hit hard by the pandemic.
In the first two months, China’s exports of unwrought aluminium and aluminium products dropped 25.2% year on year, showed customs data, as the Chinese government’s virus containment measures since late January forced aluminium processors to delay their resumption from the Lunar New Year.
With more countries joining China in imposing measures to stop the spreading pandemic last month, China’s aluminium exports are set to continue to shrink in at least the March-to-May period, compared to the same period the year before.
