BEIJING: China's aluminium imports fell 27.9% in October from the previous month, customs data showed on Monday, as the spread between domestic and international prices continued to narrow, making purchases of overseas metal less appealing.
Arrivals of unwrought aluminium and aluminium products totalled 256,619 tonnes last month, the General Administration of Customs said. That was down from 355,999 tonnes in September and well below China's October aluminium exports of 418,894 tonnes, making the country a net exporter for a second month. Shipments were still up 403.6% year-on-year, customs said.
China, the world's top producer of aluminium, has been importing its biggest volumes of the metal in more than a decade this year as its rapid economic recovery from the coronavirus saw Shanghai aluminium prices rise well above London prices .
That opened up an arbitrage window for cheaper overseas metal, turning China into a net aluminium importer in July and August - when shipments neared 430,000 tonnes - for the first time since 2009.
It reverted to net exporter in September after the arbitrage window shut but significant amounts of metal continue to flow in. Imports in the first 10 months of 2020 reached 2.25 million tonnes, customs said. That was up 383.5% year-on-year and within a whisker of the record 2.32 million tonnes imported in the whole of 2009, when the global financial crisis opened a similar arb and China was a net aluminium importer on a full-year basis.
Shanghai aluminium prices rose almost 3% in October and have repeatedly notched three-year highs this month amid tight stocks. However, London prices have been on a similar tear, keeping the arbitrage window closed.
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