GACC: China May aluminum scrap imports slump 11% MoM

During January-May, China's total import volume of aluminum scrap reached 848,982 tonnes, slightly lower by 0.9% on year, the GACC data showed.

The steady decline indicated that demand for the light metal scrap among Chinese secondary aluminum manufacturers started waning last month, as the traditional off-season for aluminum products consumption in summer was looming, Mysteel Global noted.

For example, during the week over May 22-28, production of secondary aluminum billets by the 82 Chinese smelters Mysteel monitors totaled 26,821 tonnes, lower by 6.2% from a month earlier.

Meanwhile, the total output of secondary aluminum alloys among the 158 domestic smelters under Mysteel's other tracking in May dropped 6.8% on month to 469,000 tonnes.

On the other hand, with Middle East tensions escalating again, the tightening availability of scrap materials in the international market – as well as the rise in ocean freight rates – had pushed up the import costs for China's aluminum scrap users, Mysteel Global noted.

During May, the price for imported 6063 high-grade aluminum scrap in South China's Guangdong province averaged Yuan 19,900/tonne ($2,930/t), higher by some Yuan 200/t from the average price of domestic scrap material of the same grade during the same period, according to Mysteel's assessment.

Consequently, China's aluminum scrap imports from major suppliers such as Thailand, Japan, and UK generally decreased last month, the GACC data showed.

China's import volume from its top supplier, Thailand, dropped 13.9% on month during May and by a larger 27.1% on year to 28,748 tonnes, according to the GACC, though Thailand still accounted for 28.9% of total imports.

During January-May, China's imports of Thai ali scrap also dropped by a significant 24.5% from the same period last year to 172,960 tonnes, the data showed.

Written by Anthea Shi, shihui@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com