China Unwrought Aluminium Alloy Imports Declined In May

According to China Customs, Chinese import volume of unwrought aluminium alloy was 82,800 mt in May 2023, a year-on-year decrease of 27.7% and a month-on-month decrease of 11.6%. The imports totalled 443,500 mt from January to May, a year-on-year decrease of 19.3%. China’s exports of unwrought aluminium alloy stood at 19,900 mt in May, a year-on-year decline of 2.6%, but a month-on-month increase of 20.8%.

The exports amounted to 93,300 mt from January to May, a year-on-year increase of 11.5%. The top five suppliers of China’s unwrought aluminium alloy imports from January to May are Malaysia (32,500 mt), Vietnam (9,900 mt), South Korea (7,700 mt), Thailand (6,800 mt) and Russia (5,100 mt), accounting for 39.9%, 11.9%, 9.3%, 8.2% and 6.2%, respectively. The rank is the same as April. Imports from other countries accounted for a combined 25%.

On the whole, the import volume of unwrought aluminium alloys in May decreased month on month for three consecutive months, and fell for nine consecutive months year-on-year. In terms of imports, the cost of raw materials in major supplying countries such as Malaysia and South Korea has been relatively high since the beginning of this year, while China’s domestic demand has been weak and price competition is fierce, weakening the enthusiasm of traders for importing. As such, arriving shipments of aluminium alloy ingots have been falling since March. The current overseas quotes for ADC12 meeting national standards fell to around $2,200/mt.

The domestic ADC12 price is expected to fall amid the off-season, shrinking orders and market competition. Meanwhile, the exchange rate of the yuan against the US dollar fell below the "7.15" mark, and the immediate loss of imports was in the range of 300-600 yuan/mt, closing the theoretical import window. Import orders can hardly increase in the short term, and shipments arrivals are expected to be around 80,000 mt in the near term.