SHANGHAI, Sep 22 (SMM) - According to customs data, China's aluminium extrusion export volume (HS code 76041010, 76041090, 76042100, 76042910, 76042990) stood at 81,800 mt in August 2022, a month-on-month decrease of 11,500 mt or 12.4% and a year-on-year drop of 3.42%. Among them, the exports registered in Guangdong province account for 51.9% of the total exports, followed by Shandong (17.1%) and Guangxi (6.2%). The overall structure in terms of supplying provinces changed little in August.
The export market also remained largely stable when it comes to the final destinations. The aluminium extrusion exports to the Philippines stood at 5,116 mt, taking up 6.26% of China’s total exports, Vietnam 4,944 mt, accounting for 6.05%, and Australia 3,839 mt, taking up 4.69%.
Aluminium extrusion exports fell both MoM and YoY in August, and the export market failed to sustain the momentum in the first half of 2022. On the one hand, domestic aluminium prices rose steadily in August, heightening the procurement costs of some countries, and the export orders contracted. On the other hand, the exchange rate fluctuated sharply in August, and the export transaction cost of exporters rose as well. In addition, the overseas economic downturn and shrinking consumer demand also weighed on the export market. In August and September, European aluminium smelters frequently cut the production due to skyrocketing energy costs. According to SMM research, the current capacity reduction in Europe has amounted to about 1.538 million mt, accounting for about 15% of the total installed capacity, hence the domestic export of extrusion to the EU may climb slightly. Nonetheless, it is necessary to continue to pay attention to SHFE/LME price ratio and the production reduction of overseas aluminium smelters for guidance of future domestic aluminium extrusion export.
