According to China customs data, September 2024 witnessed a continued decline in aluminium wire and cable exports. Month-on-month, the export volume was down by 29 per cent, while year-on-year, 39.77 per cent lower. Following a stable export trend at the beginning of the year, recording over 20 per cent growth Y-o-Y, China’s aluminium wire and cable shipments started facing a hit, making the Q3 export volume unsatisfactory.
Image Source: Huaxiao Metal
Focusing on September, China’s aluminium wire and cable exports were valued at $28.06 million, down by 25.48 per cent and 38.42 per cent. As per the historical survey, the quantity of exported items was about two-year low, standing at 9,300 tonnes. Among these, the export volume of steel-core aluminium stranded wire and similar products was 4,650 tonnes, down by 43.79 per cent M-o-M, while the export volume of aluminium stranded wire and similar products reached 4,721 tonnes, 4.36 per cent less than a month ago.
From January to September, China’s total exports of aluminium wire and cables were 137,300 tonnes, down by 4.29 per cent Y-o-Y from 143,500 tonnes.
Export sources and destinations
In September 2024, twenty-one Chinese provinces exported aluminium wire and cable, among which the top three were Henan, Jiangsu, and Zhejiang, with a combined export volume of 6,733 tonnes, accounting for 71.8 per cent of the total exports. Although Henan and Jiangsu saw significant declines, they managed to retain their position among the top three.
Regarding destinations, Africa, South America, and Southeast Asia were the top three, aligned with their ongoing development of local power grid.
The first quarter of 2024 saw a significant year-on-year rise in aluminium wire and cable export, as overseas enterprises showed optimism about aluminium wire consumption. Second-quarter onwards, the export volume started dwindling amid reduced overseas pick-ups and increased domestic demand. In Q3, with domestic demand rising at the peak and bottleneck surfacing at the operating capacity, the export volume tumbled further, falling below 10,000 tonnes.
As mentioned above, the steel-core aluminium stranded wire exports decreased sharply by about 44 per cent, primarily due to domestic supply growth for State Grid orders and weaker demand for overseas power grid construction. However, with the export orders reviving, SMM expects Q4 exports to recover, totalling the annual export volume to around 200,000 tonnes.
China is the world’s major producer of aluminium wire rod, followed by India. These two countries account for about 68% of the global aluminium wire rod usage. This trend is expected to continue in the coming years, with global usage reaching more than 10.1 million tonnes by 2030. To know more such intricate insights, read AL Circle’s report “ALuminium Wires & Cables - Insights & Forecast to 2030.”
