Import Volume of Aluminum Scrap Decreased 4.5%

According to China Customs that China imported 210 thousand tons of aluminum scrap in April decreased 4.5% compared with March, then from January to April imported 784 thousand tons totally decreased 1.5% yoy. The high import cost and weak demand in secondary aluminum industry were the main reasons that caused declined in aluminum scrap import.

Owing to lack in aluminum scrap supply in domestic China need to import large quantity of aluminum scrap for the production of secondary aluminum. At the same time China cast aluminum alloy export mainly chose processing trade style, thus secondary aluminum enterprises also need to import aluminum scrap to ensure export. But in this year China import less aluminum scrap when compared with former years. It is learned that aluminum price ratio between domestic and overseas was 7.18 in midmonth of February and March while the figure was 7.28 from January to February. The decline of price ratio boost the import cost of aluminum scrap importers in China, domestic enterprises also reduced orders.

Besides the rising of import cost, weak demand in secondary aluminum industry also caused declined in aluminum scrap import. This year in April and May less orders in secondary aluminum enterprises, limited order quantity in down stream die-casting enterprises and slight increasing of export orders restricted import volume of aluminum scarp.

The slow customs clearance speed and grew in domestic aluminum scrap supply also imposed restrictions on aluminium scrap import. After April aluminum price ratio between domestic and overseas may rebound slightly that will stimulate aluminium scrap import to some extend.