China’s downstream aluminium market in Q1 ’25: Cracks emerge in trade landscape

Since January, US President Donald Trump has announced the probable implementation of tariffs. He did not disclose the details then, but the history made aluminium traders susceptible to the future of the global aluminium import-export scenario, which, with time, proved to be true. China’s downstream aluminium product exports deflated while domestic consumption numbers balanced the production vs demand scenario.

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China’s downstream aluminium domestic sector remained a cornerstone of its industrial economy in the first quarter of 2025, with total domestic consumption touching 9.7 million tonnes. This consumption, spanning multiple industrial segments, was valued at approximately USD 25.2 billion.

Q1: Production and consumption

The construction sector dominated aluminium consumption, accounting for 3.2 million tonnes (or roughly 33 per cent of cumulative consumption), with an estimated market value of USD 8.32 billion. With China’s persistent investment in public housing, transport corridors, and smart city development, especially in second-tier cities, the automotive and transportation industry consumed 2.42 million tonnes, driven largely by the electric vehicle (EV) boom and the push for lightweight materials to meet fuel efficiency and emissions targets. This segment alone represented a value of USD 6.3 billion, making it the second-largest consumer of downstream aluminium products.

In tandem with automotive growth, the electronics and electrical sectors absorbed 1.55 million tonnes, worth USD 4.03 billion. Demand in this category is closely tied to ongoing upgrades in power grids, rising installations of solar and wind energy components, and China’s dominance in consumer electronics manufacturing. Packaging applications, including aluminium foil for food, pharma, and beverage sectors, contributed 1.16 million tonnes, valued at USD 3.03 billion, cheering stable consumption patterns with minor upticks driven by e-commerce and food delivery expansion.

Consumer goods (furniture, cookware, and hardware together) utilised 485 thousand tonnes of aluminium in Q1 2025, translating to a market value of USD 1.26 billion. Other industrial sectors, ranging from machinery to defence and aerospace, collectively consumed 873 thousand tonnes (worth USD 2.27 billion), indicating aluminium’s continued appeal across a broad spectrum of end-use categories. The sectoral distribution confirms that aluminium consumption in China is not only resilient but increasingly diversified, expanding beyond traditional bulk consumers.

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Breaking it down by product category, bars, rods, and profiles emerged as the most consumed class, representing 3.2 million tonnes in volume and USD 8.3 billion in value. These are widely used in construction, window framing, transportation, and industrial equipment. Plates, sheets, and strips followed closely with 2.4 million tonnes (valued at USD 6.2 billion), pointing to robust activity in automotive body panels, shipbuilding, and high-speed rail manufacturing. Wires, used extensively in electrical applications, also saw notable consumption of 1.5 million tonnes, worth USD 3.1 billion. Foil products (1.2 million tonnes), pipes and tubes (0.9 million tonnes), and fittings (0.5 million tonnes) rounded out the downstream demand.