China’s aluminium imports rise 10.7% y/y in H1

China’s aluminium imports in the first half of 2023 rose 10.7% from a year earlier, customs data showed on Tuesday, with domestic supplies constrained by power woes and demand expectations.

The world’s biggest aluminium producer and consumer imported 1.2 million metric tons of unwrought aluminium and products -including primary metal and unwrought, alloyed aluminium – from January to June, according to data from the General Administration of Customs.

June imports totalled 211,235 metric tons, 12.8% higher than the 187,362 metric tons imported in the same month of 2022, also up from the 191,701 tonnes in May.

Domestic production growth was limited this year, largely due to the hydro-power shortage in the southwestern Yunnan province, the fourth biggest aluminium-producing region in the country.

China’s production of primary aluminium merely grew 3.4% in the first half of this year to 20.16 million metric tons, according to data from the National Bureau of Statistics.

Production in Yunnan started to resume late last month, but analysts expected more supply to come to the market later.

Meanwhile, consumption of the metal mainly used in the transportation, construction and packaging sectors has been softer than expected this year.

The world’s second-biggest economy depicted persistent weakness in the property sector, a once major economic pillar and falling exports due to weak global demand.

But there were some bright spots of aluminium demand, such as the energy vehicles and solar sectors.

Investors also hoped for more stimulus by Beijing to boost economic growth, lending more support to industrial metals.

Imports of bauxite, a key raw material for aluminium products, totalled 11.56 million metric tons last month, the customs data showed, up 22.9% on the prior year.

Bauxite imports in the first six months of the year totalled 72.09 million metric tons, up 10.6% from a year earlier, the data showed.
Source: Reuters (Reporting by Siyi Liu and Dominique Patton; editing by Eileen Soreng)