China’s aluminium imports in June'22 tumble 36% Y-o-Y due to weaker demand from end-use sectors

China customs data showed a year-on-year downfall of 36.3 per cent in the country’s unwrought aluminium and aluminium products imports in June 2022, attributing to improved domestic output and weaker demand that continued to weigh on import appetite. But on a month-on-month calculation, the imports recorded a dip of only 0.06 per cent.

As per the data, China imported 187,362 tonnes of aluminium (including primary, unwrought and alloyed aluminium) in June, bringing the total imports in six months to 1.08 million tonnes, down 25.9 per cent from the same period last year.

Relaxed power restrictions have eased aluminium supply tension this year, which had been a primary reason behind the increased cargo inflows in the previous year.

China’s primary aluminium output grew year-on-year by 3.2 per cent to 3.39 million tonnes in June but dropped month-on-month from 3.42 million tonnes.

Besides the rising domestic output, weak demand for the lightweight metal from end-use sectors due to the COVID pandemic contributed to the slowdown in China’s aluminium imports.

Outside of China, aluminium production showed constraint due to the ongoing energy crisis.

"Unlike the widening arbitrage window between Shanghai and London prices last year, the tightened supply and relatively higher prices in Europe could mean continuing limited imports of aluminium into the Chinese market," said Xiong Hui, chief aluminium analyst at State-backed research house Antaike.

China’s bauxite imports decreased month-on-month by 21.3 per cent from 11.97 million tonnes to 9.42 million tonnes in June 2022. On a year-on-year, the imports of aluminium ore registered a drop of 7.1 per cent from 10.14 million tonnes, showed customs data.