China: Aluminium exports rise 13% m-o-m in May'22

China, the world's largest producer and consumer of base metals, exported 1.10 million tonnes (mnt) of aluminium in May 2022, registering an increase of 13% m-o-m from 0.97 mnt in April 2022.

The Russian invasion of Ukraine has flipped the global aluminium market. Under the new market dynamics, China is turning from being the world's largest metals buyer to the largest supplier, Steelmint understands.

A big price differential arose between the European and Asian markets due to different supply pictures. As Russia invaded Ukraine, natural gas and other energy prices skyrocketed. European aluminum makers were forced to reduce production of the metal as electric power prices rose, creating a shortage, and thus China turned out to be the supplier and gained profits.

In January-May 2022, the country's total aluminium exports were recorded at 4.34 mnt, as per data maintained by SteelMint.

Production

The country produced 3.42 mnt of aluminium in May 2022, registering a marginal increase of 1.88% m-o-m from 3.36 mnt in April 2022. The production volume saw a slight uptick following ease in power consumption curbs and Covid-19-induced lockdowns. In January-May 2022, the country's production was 16.4 mnt.

On a yearly basis, production volume was 3.20% higher as compared to 3.32 mnt in May 2021. Energy-intensive aluminium production in some Chinese regions was cut last year due to government efforts to curb power consumption to meet climate goals and tackle electricity shortages.

Product-wise break-up

Alumina ores concentrate exports were recorded at 0.19 mnt in May 2022, a rise of 13% compared to 0.17 mnt in the previous month.

Aluminium finished products exports were recorded at 0.6 mnt in May 2022, as against 0.54 mnt in April 2022, witnessing a rise of 9% m-o-m.

Semi-finished aluminium exports were witnessed at 0.09 mnt in May 2022, a sharp increase by almost 50% as against 0.06 mnt in April 2022.