Exports of Domestic Aluminium Extrusions Continued to Rise MoM in July, with Countries in Southeast Asia the Major Destinations

SHANGHAI, Aug 29 (SMM) - According to customs data, China's aluminium extrusion export volume (HS codes 76041010, 76041090, 76042100, 76042910, 76042990) added 10,600 mt from the previous month to 93,300 mt in July 2022, a month-on-month increase of 12.8% and a year-on-year increase of 14.3%. The exports from Guangdong remained the highest, accounting for 47.4% of the total volume, followed by Shangdong 16.7% and Fujian 6.8%. In particular, the export volume of Jiangxi rose 415% on the month, mainly because of backlog orders and long statistical cycle. The geographical distribution of domestic exporting provinces remained basically unchanged.

On the other hand, most exports still flowed to the Southeast Asia in July, and major destinations of aluminium extrusion exports included the Philippines, Nigeria, Vietnam and Australia. The top three were the Philippines, Nigeria and Vietnam, with exports of 6,519 mt (6.98%), 4,893 mt (5.24%) and 4,822 mt (5.17%) respectively. In the first half month of July, the domestic aluminium prices fell steeply, leading to reduced costs for countries in Southeast Asia and Africa to import aluminium extrusions from China, hence the overseas orders increased. At the same time, due to energy supply shortage, resurgence of covid-19 cases as well as tight raw material supply overseas, the aluminium processing enterprises at abroad suffered restricted production and rising costs. As a result, both demand and supply in overseas market declined, inducing robust domestic export of aluminium extrusion. In August, the domestic aluminium prices rallied, which is likely to weigh on the domestic export, thus the overall domestic aluminium extrusion export is expected to drop slightly month-on-month.