China aluminium scrap import surges 27.3% YoY in Jan; annual import shrinks due to slack demand

<p>China's output of secondary aluminium faced a significant slowdown in the recent past impacted on by global economic downturn and shrinking demand. However, demand for the secondary metal produced from scrap aluminium has been on a rise in China driven by strong automotive industry demand. While Building and Costruction still remains the largest secondary aluminium end user sector, auto parts manufacturing has grown in a big way to represent a strong correlation with secondary aluminium consumption in the country. This rising domestic demand for the metal is essentially met through import of scrap, which increased 27.28 per cent year-on-year to total at 171,255 tonnes in January 2017, revealed data released by the General Administration of Customs, China on February 24.</p> <p>{newsStudioGallery}</p> <p>Year-wise data of aluminium scrap import by China shows a declining trend since 2013. In 2016, the country imported 1734808.62 tonnes of aluminium scrap down six per cent from the previous year. In 2017, China is estimated to import 1525398.93 tonnes of aluminium, down 12.7% YoY.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Chinaaluminiumscrapimport.jpg" alt="News" width="517" height="262" /></p> <p>In January 2017, the top aluminium scrap supplying countries to China were the US (50,478 tonnes, +25% YoY), Australia (29,520 tonnes, +59.45% YoY), Malaysia (26,484 tonnes, +75.59% YoY), the UK (13,108 tonnes, +99.27% YoY), and Thailand (5,107 tonnes).</p> <p>China's aluminium scrap export also surged in January this year. The volume increased 228.22 per cent to reach 84 tonnes. Turkey and Japan remained the two major importing countries where China exported its alumiium scrap. Turkey imported 45 tonnes while Japan imported 35 tonnes of aluminium scrap last month to feed their domestic downstream and end user industries.</p> <p>{googleAdsense}</p> <p>According to a report published by China Nonferrous Metals Industry Association Recycling Metal Branch (CMRA), secondary aluminium output in China will reach around 9 million tonnes growing at CAGR 8 per cent through 2020. If that happens aluminium scrap import will shrink provided the price gap between domestic and overseas remains as is. The growing demand for the material in the domestic market will motivate more players to upgrade their old low-efficient aluminium recycling system by new technologies.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Chinascrap2.jpg" alt="News" width="517" height="216" /></p> <p style="text-align: center;"><strong>Emerging Patterns in China Secondary Aluminium Industry</strong></p> <p style="text-align: center;"><strong>Source: CMRA</strong></p> <p>As of now, China is the highest aluminium scrap importer in the world, and as per estimates it will continue to be so in the foreseeable future buoyed by soaring demand from domestic aluminium fabricators and auto wheel manufacturers.</p>