Frequent tax hike weighed on growth in aluminum wheel exports [SMM Analysis]

According to customs data, in April 2024, China's export volume of aluminum wheels was 72,100 mt, down 9% MoM and 15% YoY.

By export destination, the top five export destinations for aluminum wheels in April were US, Japan, Mexico, South Korea, and Thailand. The export volumes to these five countries accounted for 32%, 16%, 10%, 9%, and 6% of the total, respectively.

40%-50% of aluminum wheels produced in China are directly exported. In recent years, the export destinations have been stable and highly concentrated, with the top 5 export destinations accounting for 60%-80% of the total exports, which also brings certain risks. Some of the top export destinations recently announced frequent tax increases, putting pressure on the export market. In the future, the export trend of aluminum wheels is unlikely to see significant growth, with the overall export volume expected to weaken.