September 2024: China’s primary aluminium imports decline 16% M-o-M on limited arbitrage opportunity

According to the General Administration of Customs, China's primary aluminium import receded from its monthly high in September 2024, marking a sequential decline of 16 per cent. Even on an annual basis, the import volume decreased by 31.7 per cent, astonishing the industry for the unprecedented downtrend.

The Shanghai Metals Market cautioned about the high chances of an interim fall in China's primary metal imports due to limited arbitrage opportunity because of the narrow price gap between LME and SHFE since the beginning of September. China's domestic imports of primary aluminium mainly relied on long-term contracts from Russia and parts of Southeast Asia. Malaysia's contribution to China was also affected in September due to 100,000 tonnes of production cut because of an accident.

However, the intensity of the fall was not impactful on the year-to-date import volume; hence, the total imports from January to September increased by 72.5 per cent from the previous year, a slightly slower growth rate than till the last month.