The UAE’s aluminium alloy export to China triples during Jan-Nov 2017

Aluminium alloy export by the United Arab Emirates to China has tripled in the 11-month period of 2017. From 661 tonnes in January to 2,038 tonnes in November, the Gulf country has sold more than 14,188 tonnes of aluminium alloy billets to the world’s biggest aluminium consuming market during January-November 2017, up 85.77 per cent from the same period previous year. The volume exported accounts for around 23 per cent of the total aluminium alloy imported by China.

The month-on-month increase in aluminium alloy export by the UEA to China is represented in the below graph:

Data Source: Shanghai Metals Market

The UAE is the global leader in the export of aluminium alloys. The country has doubled its export capabilities in the last 5 years. Emirates Global Aluminium (EGA) – a joint venture between Dubai Aluminium (“DUBAL”) and Emirates Aluminium (“EMAL”) is the major producer and exporter of aluminium alloys in UAE. Its combined production stands at 2.4 million tonnes per annum.

Most of EGA's annual production is value-added products, with about 90 per cent of total production being exported across the world. Alloy billets make up 46 per cent of EGA’s total aluminium production.

In November alone, the UAE exported 2,038 tonnes of aluminium alloy to China, up 79.38 per cent YoY, and 159 per cent month-on-month.

China has been the UAE’s second largest trading partner since earlier this decade. Last year, April, the two countries saw the ties getting strengthened further when EGA opened its first office in China. The office is expected to deepen commercial ties by developing sales opportunities for EGA’s bauxite mined in the under-development Guinea operations as well as value-added products like aluminium alloy ingots to the biggest market in Asia.