China’s aluminium extrusion exports improve 13% M-o-M in July 2022, with Guangdong remaining the highest exporter

According to China Customs data, the country exported 93,300 tonnes of aluminium extrusion (HS codes 76041010, 76041090, 76042100, 76042910, 76042990) in July 2022. That was 10,600 tonnes or 12.8 per cent more than the previous month and 14.3 per cent higher than a year ago.

Guangdong continued as the highest exporting province, accounting for 47.4 per cent of the total volume, followed by Shandong and Fujian. While the former exported 16.7 per cent of the total volume, the latter supplied 6.7 per cent.

China Customs data also showed that Jiangxi, a southeast Chinese province, registered a monthly surge of 415 per cent in aluminium extrusion exports, driven by backlog orders and long statistical cycle.

The above data indicates that despite the changes in export volume, the geographical distribution of domestic exporting provinces remained unchanged.

The most exports were directed to the Southeast Asia in July. Among other major destinations, Philippines topped the list with 6,518 tonnes, accounting for 6.98 per cent of the export, followed by Nigerai with 4,893 tonnes (5.24%) and Vietnam with 4,822 tonnes (5.17%).

In the first half of July 2022, the domestic aluminium prices in China fell significantly, causing reduced import costs for countries in Southeast Asia and Africa to import aluminium extrusions from the said country. Besides, overseas production of primary aluminium slowed down in the interim period, in addition to resurgence of COVID-19 cases, led to an increased dependence on imported products for Southeast Asia and African countries.

In August, the domestic aluminium prices rallied, which would likely to weigh on the export from China, leading to an overall drop in extrusion export.