Aluminum wire and cable export volume in March fell by 16.7% YoY [SMM analysis]

According to customs data, China's aluminum wire and cable exports in March were 14,000 mt, a drop of 6% month-on-month and 18.7% year-on-year. The total export value of aluminum wire and cable dropped by 2.5% MoM and 16.7% YoY to $4,506 in March. The total export volume of aluminum wire and cable in the first quarter of 2024 was 56,000 tons, and the total export volume in the first quarter of 2023 was 44,000 tons, an increase of 16.4% year-on-year (the above data are based on the two codes 76141000 and 76149000). In terms of export registration places, there were 21 exporting provinces in March. The top three provinces in terms of export volume were still Jiangsu Province, Henan Province, and Beijing, with a total export volume of 9,749 tons, accounting for 69% of the total exports. The industry's export locations are relatively concentrated. It is worth noting that Jiangsu Province, a major exporter of aluminum wire and cables, saw a significant decline in exports in March, down 34% from February; while Hebei Province's exports improved significantly this month, with exports up 181% from the previous month.
In terms of exporting countries, there were 77 exporting countries in January and February. Although the orders were widely distributed, the concentration increased in March. An analysis was conducted on the top fifteen countries in terms of total exports. In March, the exports of the top three aluminum wire and cable exporters maintained a month-on-month growth trend, among which Germany had the most obvious month-on-month growth, up 131% from February.
In addition, it is worth noting that the export volume of aluminum wire and cables from Estonia, Poland and Malaysia in March achieved significant growth, while the export volume from Vietnam, Bangladesh and Saudi Arabia declined significantly month-on-month.
SMM brief comment: As time goes by, we have entered the traditional consumption peak season of March and April. According to the export consumption logic of previous years, the export volume of aluminum wire and cables will remain high after the Spring Festival. Although the overall export volume in the first quarter of this year increased significantly compared with last year, the export volume of aluminum wire and cables in March this year has unexpectedly declined, and its performance is also mediocre compared with March last year. Looking back at the aluminum price trend in March, both domestically and overseas, affected by global economic inflation, aluminum prices have been very strong, and domestic prices broke through the highs of previous years. Downstream wire and cable companies were catious about placing orders and are facing problems such as a significant increase in production costs and loss of profits, which has dampened their enthusiasm for production. Entering the second half of April, domestic aluminum prices pulled back from a high level, market sentiment turned moderate, and supported by demand during the export peak season, SMM expects that the export performance of aluminum wires and cables in April may show a recovery trend.