China Aluminium Extrusion Exports Declined in October, But Likely to Increase in November amid Higher Profits

SHANGHAI, Nov 23 (SMM) – According to customs data, China's aluminium extrusion exports stood at 74,400 mt in October, down 8% month on month and 4% year on year.

Among them, the exports to European Union were 5,200 mt, down 6% on the month and 10% on the year. The exports to European Union accounted for 7.04% of the total exports, which was 0.12 percentage point higher from the same period last year.

The main export destinations in October were Vietnam, Nigeria, Australia, the Philippines, South Africa and other countries, among which the exports to Vietnam accounted for 8.79%, Nigeria 6.43%, Australia 6.14%, the Philippines 5.66%, and South Africa 5.00%. The exports to other 150 countries accounted for more than 60% of the total exports.

The exports from Guangdong remained high, accounting for 53.24% of the total volume. Shandong exported 12.55% of the aluminium extrusion.

China’s exports of aluminium extrusion declined in October mainly due to the 7-day National Day holiday. Besides, the aluminium prices kept rising in early October and hit a new high at 24,240 yuan/mt on October 19 before falling back. The SHFE/LME aluminium price ratio stood above 7.5, which suppressed the exports. In late October, the aluminium prices fell too fast, making the domestic and overseas buyers wait-and-see.

The SHFE/LME price ratio dropped rapidly to 7.07 in November, which facilitated the exports. The export profits of aluminium extrusion also increase in November, which is likely to reach and surpass the high level in 2018. According to SMM survey, the domestic traders are active in exports, and the aluminium extrusion exports are likely to rise in November.