China's aluminum exports slide in May

China's aluminum exports dropped from a four-month high as ample supplies this year depressed premiums paid by buyers in Asia.

Shipments of unwrought aluminum and products in May slid 5.7 percent from the previous month to 410,000 metric tons, according to data published by China's General Administration of Customs on Monday. Exports from January to May are up more than 35 percent from the same period last year to 2.06 million tons, according to the data.

"The export surge is still quite strong, but if you look month-on-month it's coming down a bit and that's probably because of weaker aluminum prices and premiums outside China," said Helen Lau, analyst at Argonaut Securities (Asia) Ltd. in Hong Kong. "The international price is much cheaper now."

The potential profit for Chinese producers from exporting excess aluminum is falling along with regional physical premiums, which are paid on top of London Metal Exchange prices. The country's output of primary aluminum rose to a record 2.59 million tons in April, according to the latest data from the National Bureau of Statistics.

Buyers in Japan are seeking the lowest fees since 2009 for deliveries next quarter, three people involved with the negotiations said May 28. Premiums for the metal delivered to Japan, the regional benchmark, have dropped 63 percent since the start of 2015, according to data from Metal Bulletin.

Aluminum for delivery in three months on the LME were little changed at $1,749.50 a ton at 1:07 p.m. in Hong Kong. Prices are down 12 percent since hitting a five-month high on May 5.