Risk of Decline in China Aluminum Wheel Exports [SMM Analysis]

SMM, August 20, 2024: According to customs data, China exported 76,700 mt of aluminum wheels in July 2024, down 7% MoM, up 2% YoY.

By export destination, the top five target countries for aluminum wheel exports in July remained the US, Japan, Mexico, South Korea, and Thailand. The export volumes to these five countries accounted for 28%, 18%, 12%, 9%, and 6% of the total aluminum wheel exports, respectively. The ranking of export destinations remained stable, but the proportion of exports to the US stayed below 30%, indicating a potential slow shift in the structure of export destinations.

40%-50% of aluminum wheels produced in China are directly exported, thus the export market had significant impact for the entire industry. In recent years, the aluminum wheel export market has been stable and concentrated, with the export volumes to the top five target countries consistently accounting for 60%-80% of the total export volume. However, due to factors such as the slow pace of global economic recovery and the rise of trade protectionism, there have been few optimistic signals for overseas demand for aluminum wheels. In the future, there may be a risk of decline in China's aluminum wheel export volume.