China witnessed a substantial uptick in primary aluminium imports in 2023

In 2023, domestic primary aluminium prices continued to surge, driven by a trend of robust internal demand contrasted with relatively weaker external markets. This dynamic opened a window for increased imports of primary aluminium, resulting in a significant uptick in annual import volumes.

Moreover, reshaping the global trade dynamics for primary aluminium saw more products flowing into China, with Russia emerging as a critical source country. Consequently, China experienced a substantial uptick in primary aluminium imports in 2023, which mitigated the supply shortages stemming from local production cuts. Concurrently, imports of aluminium alloys also sustained at a scale of one million tonnes.

General Administration of Customs data

According to data from the General Administration of Customs, China's imports of primary aluminium in 2023 reached 1.543 million tonnes, nearing the record high of 1.579 million tonnes in 2021, marking a substantial increase of 130.7 per cent over the previous year. Conversely, exports totalled 150,000 tonnes, reflecting a 23.4 per cent decrease compared to last year. As a result, net imports for the year surged by 195.1 per cent to 1.393 million tonnes.

In terms of import trade modes, general trade emerged as the predominant method, constituting 67.8 per cent of total imports followed by logistics goods in particular customs supervision areas, accounting for 25.3 per cent. Together, these two modes comprised 93.1 per cent of total imports. Notably, most imports originated from Russia, with India and Iran contributing significantly, accounting for 76.2 per cent, 6.4 per cent, and 3.9 per cent, respectively. These three countries comprised 86.5 per cent of China's total imports.

Regarding exports, nearly all shipments were logistics goods from special customs supervision areas. These exports were primarily directed towards South Korea, Malaysia, and Japan, with the combined share of China's exports to these three countries reaching 89.8 per cent in 2023.

Aluminium alloy import and export

In 2023, China experienced a notable shift in its aluminium alloy trade dynamics. Exports of the aluminium alloy increased while imports decreased during this period. Aluminium alloy is a primary raw material for processing trade exports in China, with a provisional tax rate of 15 per cent levied on general trade exports.

Export figures indicate that China exported 242,000 tonnes of aluminium alloy in 2023, marking a 7.3 per cent increase from the previous year. The primary trade mode was processing trade, constituting 63.6 per cent of total exports. Import processing trade accounted for 22.1 per cent, while logistics goods in special customs supervision areas comprised 13.7 per cent. Together, these three trade modes encompassed 99.4 per cent of all exports. Most exports were directed towards Japan, South Korea, Hong Kong, and Mexico, comprising 86.0 per cent of total exports.

Conversely, China's annual import of aluminium alloy amounted to 1.133 million tonnes in 2023, reflecting an 11.3 per cent decrease from the preceding year. General trade emerged as the dominant mode, constituting 84.4 per cent of imports, followed by logistics goods in special customs supervision areas at 10.6 per cent. A smaller portion of imports occurred through import processing trade. Notably, imports primarily originated from Malaysia, Vietnam, Thailand, South Korea, and Russia, with these five countries accounting for 75.2 per cent of total imports.

It's estimated that approximately 500,000 tonnes of the imported aluminium alloys are compound ingot (RSI), which serves as raw materials for recycled aluminium production. This indicates a significant portion of imported aluminium alloy serves the purpose of facilitating recycled aluminium production.