China’s aluminium extrusion exports slump 12.4% M-o-M attributing to sharp fluctuating exchange rate

According to China customs data, the country’s aluminium extrusion (HS code 76041010, 76041090, 76042100, 76042910, 76042990) export volume amounted to 81,800 tonnes in August 2022, registering a month-on-month fall of 11,500 tonnes or 12.4 per cent and a year-on-year drop of 3.42 per cent.

Guangdong was the leading exporter of extrusion, accounting for 51.9 per cent of the total exports. Shandong contributed 17.1 per cent to the total exports, while Guangxi 6.2 per cent.

The export destinations remained the same, with Philippines securing 5,116 tonnes of aluminium extrusion from China. That accounted for 6.26 per cent of China’s total exports, found customs data. Vietnam hauled 4,944 tonnes, accounting for 6.05 per cent, and Australia 3,839 tonnes, taking up 4.69 per cent.

With the M-o-M and Y-o-Y fall in China’s aluminium extrusion exports, the export market failed to sustain the momentum in the first half of 2022. This could be attributed to the steady rise of domestic aluminium prices on one hand, while on the other, a sharp fluctuation in exchange rate in August that pushed up the transaction cost for exporters.

In addition, the overseas economic downturn and fall in consumer demand took a toll on China’s extrusion export market. However, SMM research projects a rise in China’s domestic extrusion export to the EU, as the current capacity reduction in Europe has accounted for 15 per cent of the total installed capacity.