Why the Exports of Unwrought Aluminium and Aluminium Semis Hit a Record High in November?

SHANGHAI, Dec 7 (SMM) – China exported 509,300 mt of unwrought aluminium and aluminium semis in November, up 6.2% from the previous month and 20.1% on the year, according to customs data. Exports totalled 5.06 million mt in January-November, up 14.9% on the year. The exports of unwrought aluminium and aluminium semis hit a record high since March 2020.

There are three reasons for it.  There were rumours that China will cancel the export tax rebate for aluminium semis, and some aluminium processing companies ramped up exports. According to the feedback from the aluminium downstream market, overseas demand is strong. At the same time, domestic aluminium prices continued to increase, and overseas customers were relatively active in placing orders. SHFE/LME aluminium price ratio stayed below 8.0. Traders actively accepted orders as the export profits increased. Even some companies that have not been involved in export trade have begun to consider exporting aluminium profiles, resulting in an increase in exports. SHFE/LME aluminium price ratio set a record low of 7.07 on November 18. The export profits for aluminium semis trended higher.