China's aluminium imports jump to 11-year high on lower overseas prices

BEIJING: China's June aluminium imports surged by more than 490pc from a year earlier, customs data showed on Thursday, to their highest in 11 years, as traders, who rarely buy large amounts from overseas, took advantage of the lower prices abroad.

China, the world's top aluminium producer, imported 288,783 tonnes of unwrought aluminium and aluminium products last month, the General Administration of Customs said.

That was more than double May's imports of 119,145 tonnes and a jump of 493.1pc from June 2019, customs said, as buyers took advantage of the differences between domestic and international prices. Imports were the highest since June 2009.

China shipped out 354,038 tonnes of unwrought aluminium and aluminium products last month, down 30pc year-on-year, customs data showed.

Imports in January to June were 816,592 tonnes, up 219.2pc year-on-year, while exports were 2.37 million tonnes, down 20.6pc from a year earlier, leaving China a net exporter of 1.5 million tonnes in the first six months of 2020.

Shanghai aluminium prices rose 23pc in the second quarter as Chinese consumption roared back from a coronavirus-driven collapse.

However, London prices only gained 6.1pc in April to June amid sluggish demand outside of China, and after a 15.7pc dip in the first quarter.

The spread between Shanghai and London cash aluminium prices widened to almost 1,800 yuan ($258.16) a tonne in late May, the most since January 2014, opening up a so-called arbitrage for primary metal to head to China from overseas.

China's imports of unwrought, alloyed aluminium - described by analysts as secondary ingots - have also been rising in recent months to compensate for curbs on inbound scrap metal shipments.

The data also showed alumina exports in June soared 783.1pc year-on-year to 30,000 tonnes.

In the first half of the year, China shipped out 100,000 tonnes of alumina, down 46pc from same period year earlier.

Customs is due to release a breakdown of imports by origin and type of aluminium and other commodities on Saturday.