According to the General Administration of Customs, China’s primary aluminium imports in July 2024 recorded a month-on-month rise of 7.2 per cent and a year-on-year increase of 11.4 per cent.
With the latest hike, China’s primary aluminium imports in July reached 129,900 tonnes, bringing the cumulative import volume in the first seven months of the year to 1.349 million tonnes, up 124 per cent Y-o-Y.
The customs data even showed China’s primary aluminium exports were at nearly 190,000 tonnes, moving up by 169.4 per cent month-on-month but down by 16.7 per cent year-on-year. From January to July, China exported 47,200 tonnes of primary aluminium, about 41 per cent less than a year ago.
Taking into account the export volume, China’s net import volume of primary aluminium came in at 111,000 tonnes, down 2.8 per cent M-o-M but up 18.3 per cent Y-o-Y. Total net imports in seven months amounted to 1.302 million tonnes, marking an annual increase of 149 per cent.
It is to be noted that China’s primary aluminium imports grew M-o-M in July but net imports decreased. The increased volume of primary aluminium imports was primarily contributed by processing trade, while the import through general trade continued to decline in July.
China’s unwrought aluminium and aluminium product imports in July 2024 were 11.1 per cent higher year-on-year to stand at 260,000 tonnes. The total imports in seven months amounted to 2.3 million tonnes, up by 60.6 per cent from the corresponding period of the previous year.
Sources of imports
Russia, Indonesia, India, and Malaysia were the four main sources of China’s primary aluminium imports. Russia led the list, supplying 54,500 tonnes, accounting for 42 per cent of China’s total imports in July. From January to July, China’s total import volume from Russia was 673,000 tonnes, reflecting an increase of 28.9 per cent year-on-year. The main destinations of Russia’s metal are Shanghai, Shandong, Henan, and Liaoning.
In addition, a large portion of alumina is exported from China to Russia, which is processed into aluminium ingots and then re-imported into the Chinese market. It is comprised of a volume of 46,000 tonnes, accounting for 35.6 per cent.
In July, Indonesia exported about 12,700 tonnes of primary aluminium to China, accounting for 9.1 per cent of the latter’s total imports. From January to July, Indonesia exported 120,000 tonnes, accounting for 8.9 per cent of China’s total imports.
Outlook for August
With the overseas prices being narrow compared to the domestic price, SMM expects net imports of primary aluminium to increase to 130,000-140,000 tonnes. By the fourth quarter of 2024, the second phase of Indonesia’s Huacheng will likely come into operation, expected to drive the export volume from Indonesia to China. SMM further anticipates China’s total import volume of primary aluminium to reach 2 million tonnes, up 45 per cent Y-o-Y.
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