China experiences 50% inflation in unwrought aluminium alloy imports

In March 2022, China imported 120,600 tonnes of unwrought aluminium alloy, up by 54.5 per cent Y-o-Y and 31.3 per cent M-o-M, according to China General Administration of Customs. The imports in the first quarter of 2022 totalled 329,000 tonnes, going up by 50.2 per cent, year on year.

China exported 18,300 tonnes of unwrought aluminium alloy in March, up by 2.1 per cent Y-o-Y and 55.6 per cent M-o-M. In Q1 2022, exports stood at 38,000 per tonne, down by 21.4 per cent Y-o-Y.

Malaysia, South Korea and India exported a lion share of unwrought aluminium alloy to China in March 2022. The import ratio from these countries declined slightly in comparison with the previous two months. From Malaysia, China imported 23,400 tonnes which accounted for 19 per cent of the total imports, while from South Korea and India, China secured 17,900 tonnes, almost 15 per cent of the total haul. Exports travelled mainly to Japan.

Among the three main aluminium alloy importing provinces in China, Zhejiang imported 50,900 tonnes of unwrought aluminium alloy in March, or 43 per cent of the total intake, while Guangdong imported 26,600 tonnes or 22 per cent, and Jiangsu imported 11,600 tonnes or 10 per cent.

Nevertheless, the import and export quantity of unwrought aluminium alloys in March 2022 projected an increase, both on a year-on-year and month-on-month basis.

Due to various conditions such as holidays and imports being at loss in February, the March imports rebounded to more than 100,000 tonnes, showcasing M-o-M increase. In Q1 2021, imported alloys faced a loss of more than RMB 300-500 per tonne; also, the importers were less focused on performance. Therefore, the import this year has shown a Y-o-Y increase.

Subjected to higher domestic prices and reduced production due to chip shortage and pandemic in Japan or other countries, the first quarter of this year witnessed a demand decline. In fact, exports of aluminium alloy ingots dropped 21.4 per cent compared with Q1 2021. 

The oversees crisis has deepened in March due to certain geopolitical factors, causing aluminium supply shortage and stimulating the LME aluminium price hike.

Globally ADC12 value rose to a new height of US$3,200 per tonne.

The import prices were still gaining momentum in spite of the recent pull-down, amounting in lesser import orders. Imports of aluminium alloy ingots are expected to fall in April.