Suez Canal suspension to disrupt Chinese aluminium exports to Europe

SHANGHAI, Mar 31 (SMM)—It was reported last Wednesday that a giant container ship ran aground on the Suez Canal, causing two-way traffic on one of the world’s busiest maritime trade routes to be blocked. As an important international waterway, the Suez Canal connects the Mediterranean Sea and the Red Sea, providing the closest route from Europe to the land around the Indian Ocean and the Western Pacific. According to statistics, 20% of the world's total maritime cargo volume, 80% of the cargo volume between European and Asian countries, and 25% of the world's oil tankers pass through the Suez Canal. Therefore, the Canal is of significant importance to the shipping between China and Europe.

The “traffic jam” at the Suez Canal will also have a certain impact on China's aluminium semis exports. According to customs data, China's exports of aluminium semis, including aluminium plate, strip and foil, aluminium extrusion, aluminium wire and cable to Europe, totalled about 63,400 mt from January to February, accounting for 7.9% of the total aluminium semis exports. Among them, aluminium foil exports to European countries stood at 31,000 mt, accounting for 13.9% of the total aluminium foil exports.

SMM understands that the two-way obstruction of the canal transportation will mainly affect domestic aluminium product and aluminium semis exports. If the channel is blocked for a long time, it will affect domestic aluminium product exports in April. Detouring through the Cape of Good Hope to China will delay the arrival by about one month.