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AL CIRCLE

Rapid rise in SHFE/LME aluminium price ratio in October dents China’s extrusion exports, customs data

EDITED BY : 2MINS READ

China customs data has reported an 8 per cent month-on-month downfall in the country’s aluminium extrusion exports in October 2021. As per the data, the exports stood at 74,400 tonnes in the said month, which also reflected a 4 per cent year-on-year fall.

Rapid rise in SHFE/LME aluminium price ratio in October dents China’s extrusion exports

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The decline in exports could be attributed to the 7-day National Day Holiday in China. Besides, the sharp hikes in domestic aluminium price in early October to a new high at RMB 24,240 per tonne affected the export order. The SHFE/LME aluminium price ratio stood above 7.5. In late October, the prices fell too fast, making both domestic and overseas buyers wait-and-see.

The main export destinations of China’s aluminium extrusion were Vietnam, Nigeria, Australia, the Philippines, South Africa and other countries. The exports to Vietnam and Nigeria accounted for 8.79 per cent and 6.43 per cent, respectively, while the exports to Nigeria and Australia accounted for 6.43 per cent and 6.14 per cent. To the Philippines and South Africa, China’s aluminium extrusion exports accounted for 5.66 per cent and 5 per cent.

China customs data also showed that China’s exports to the European Union totalled 5,200 tonnes in October, reflecting a month-on-month drop of 6 per cent and a year-on-year decline of 10 per cent. The exports to the European Union accounted for 7.04 per cent of China’s total aluminium extrusion exports.

The exports from Guandong remained high, accounting for 53.24 per cent of the total volume, while Shandong exported 12.55 per cent.

Outlook for the Indian Aluminium Industry

In November, the SHFE/LME price ratio dropped rapidly to 7.07, which facilitated the exports. The export profits are on upward trend so far and are likely to reach and surpass the high level in 2018. SMM expects China’s aluminium extrusion exports to record a rise in November.


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EDITED BY : 2MINS READ

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