China's June aluminium imports fall as higher overseas prices curb flow

China’s imports of unwrought aluminium and aluminium products declined 17.4% in June from a year earlier, customs data showed on Saturday, as an unfavourable import arbitrage curbed inflows.

Volume dropped to 250,000 metric tons, according to data from the General Administration of Customs. Imports during the first half of 2026 totalled 1.88 million tons, down 5.1% from a year earlier.

The data includes primary metal and unwrought, alloyed aluminium.

An unfavourable import arbitrage made overseas aluminium more expensive than domestically produced metal, as higher prices on the London Metal Exchange and physical premiums widened losses for Chinese importers during the second quarter, traders said.

The benchmark three-month aluminium on the LME hit a four-year high of $3,724 a ton in early June due to Middle East supply concerns before eventually ending the month down almost 16%.

Aluminium rises on Middle East tensions

Russian producer Rusal, meanwhile, had sought to redirect some cargoes from China to Japan and other Asian markets, where buyers were paying higher premiums.

Japan aluminium buyers agreed to pay a premium of $395 a ton over the benchmark price for shipments coming in the third quarter, up 13% from the already high around $350 premium in the second quarter.

Meanwhile, China’s unwrought aluminium and product exports climbed to a record high in June.

Imports of bauxite, a key raw material for aluminium, rose 12.6% year-on-year to 20.32 million tons in June. First-half 2026 imports reached 120.93 million tons, up 17.4% year-on-year.

China produced 3.98 million tons of primary aluminium in June, up 4.7% from a year earlier, data from the National Bureau of Statistics showed.