China's aluminium wire exports soar 222.67% in May as exporters capitalise on tax incentives

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China's aluminium wire exports surged in May as rising aluminium prices and favourable trade incentives drove a sharp increase in overseas shipments.

Official customs data showed that exports of aluminium wire reached 50,224 tonnes in May, up 222.67 per cent from April and surpassed the combined 42,955 tonnes shipped during the first four months of the year. The sharp increase highlights how exporters are increasingly using the product to capture stronger international prices while benefiting from supportive trade policies.

The May surge lifted cumulative exports for the January-May period to 93,179 tonnes, putting shipments on track to surpass last year's pace. The five-month total has already nearly matched the 94,369 tonnes exported during the first eleven months of 2025.

Price rally and policy incentives fuel exports

A combination of strong overseas prices and favourable export policies has been driving the surge.

Aluminium wire, widely used in power transmission and distribution networks, has increasingly become a preferred export product as producers seek to maximise returns from international markets. The trend accelerated amid a rally in global aluminium prices, which gained momentum during heightened geopolitical uncertainty in the Middle East.

Exporters also benefit from a significant policy advantage. Aluminium wire qualifies for a 13 per cent export tax rebate, while exports of unwrought aluminium remain subject to a 30 per cent export tariff according to Reuters.

The disparity has encouraged producers and traders to export aluminium in processed form rather than as primary metal, contributing to the sharp rise in shipments since April.

Global demand strengthens alongside aluminium prices

The export surge coincided with a robust performance in international aluminium markets.

The benchmark three-month aluminium contract on the London Metal Exchange rose 5.54 per cent in May, extending gains for a third consecutive month and improving the attractiveness of overseas sales for Chinese suppliers.

The stronger pricing environment also supported demand from key importing nations, several of which significantly increased purchases during the month. Explore an indepth analysis of the aluminium wire and cables market in our ALuminium Wires & Cables - Insights & Forecast to 2030 report.

Asian buyers drive growth

South Korea remained the largest destination for Chinese aluminium wire exports in May.

Imports by South Korea surged to 17,797 tonnes, compared with 2,911 tonnes in April. Vietnam also sharply increased purchases, importing 7,254 tonnes versus 2,288 tonnes a month earlier.

Demand expanded beyond the region's traditional buyers. Japan imported 2,342 tonnes, while Mozambique purchased 7,236 tonnes, both substantially higher than the volumes recorded in previous months when purchases were measured only in the hundreds of tonnes.

Malaysia and Thailand also ranked among the leading destinations, underscoring the broad-based increase in demand as buyers sought additional supply amid elevated global aluminium prices.

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