China's aluminium scrap imports fall YoY in January-February; expected to drop further in 2018

Aluminium scrap imports by China, the world’s biggest aluminium producer, dropped YoY through the first two months of 2018 as the secondary aluminium production took a back sit due to environmental restrictions during winter heating season.  As per recent export-import data released by General Customs, the figures dropped by 29 per cent year-on-year reaching 119,737 tonnes in February.

The monthly import volume, however, was also lower than in January when aluminium scrap imports totalled 190,000 tonnes. Our data shows aluminium scarp import is expected to remain flat in 2018. However, the trend indicates a lower scrap import in 2018.

China imported 309,698 tonnes of aluminium scrap during January-February period, down about 9 per cent from the same period of previous year. Import has been limited because of the new scrap policies and the restrictions imposed upon the import of aluminium scrap in China. Prerequisites on the level of impurity in imported scrap aluminium are also affecting scrap supply in the domestic market.

The top ten aluminium scrap exporting countries to China in January and February are:

Source: China Customs (Shanghai Metals Market)

The US remained the top aluminium scrap exporter to China followed by Hong Kong, Australia, Thailand, Malaysia, and the UK. In another update, China’s Ministry of Commerce has proposed to levy a 25% tariff on aluminium scrap imports from the US in order to offset the losses brought by the newly announced US tariffs. This might further drop aluminium scrap import from the U.S.