China's Exports of Aluminium Ingots in the First Two Months of 2022 Mainly Came from Bonded Warehouses

SHANGHAI, Mar 28 (SMM) – According to the latest customs data, China exported a total of 30,700 mt of unwrought non-alloy aluminium in the first two months of this year, a year-on-year increase of 1,833%. The exports were concentrated in February when the monthly export volume stood at 26,400 mt, a year-on-year increase of 2,361%.

Unwrought non-alloy aluminium exported in the first two months included:

1. Refined aluminium and high-purity aluminium (unwrought non-alloy aluminium with an aluminium content of ≥99.95%, HS code 76011010), whose export volume was 1,700 mt, all of which was exported under general trade;

2. Ordinary aluminium ingots (unwrought non-alloy aluminium with aluminium content < 99.95%, HS code 76011090), whose export volume was 29,000 mt, of which 28,900 mt was exported as from bonded warehouses and exported to 5 countries including Montenegro, Italy, South Korea, Nigeria and Tanzania.

China restricts the export of ordinary aluminium ingots, and the tentative export tax rate is 15%; the export of refined aluminium and high-purity aluminium is not restricted, and the tentative export tax rate is 0%.

The trade model showed that the ordinary aluminium ingots exported in the first two months were not domestic aluminium ingots, but rather overseas-produced aluminium ingots that were previously imported from abroad and kept in bonded warehouses.

Since the beginning of this year, although overseas aluminium prices have gained more than domestic prices. Based on the SHFE/LME aluminium price ratio and exchange rates and under the restriction of 15% export tariff, the aluminium export window has not opened.

Judging from the current inventory in the bonded warehouses, the export volume of unwrought non-alloy aluminium may increase significantly in March.