CHINA DATA: November primary aluminum imports up 64% on month

China's primary aluminum imports in November surged 63.9% from October, reaching 228,857 mt, data from China's customs showed Dec. 21.

November primary aluminum imports rose 308.3% from November 2020, according to the customs data.

China's primary aluminum imports are expected to fall in December from November, as buyers are seen incurring losses on imports amid declining domestic prices over the past few weeks, sources said.

Primary aluminum imports

China's primary aluminum imports in November reached the highest level since September 2020, customs data showed.

China has been importing at a greater pace in 2021, as domestic smelters faced production hurdles due to power restrictions and tightened energy consumption controls.

The country's imports of unwrought aluminum and aluminum products reached 397,915 mt in November, surging 109.3% compared to the same period last year, customs data showed.

China is the world's largest aluminum producer and was a net exporter until recently. China's imports saw an upsurge since the start of 2020, as domestic prices shot up, rising above seaborne prices, while economic recovery also pushed up industrial consumption.

SHFE's most active contract for Feb. 2021 delivery closed at Yuan 19,630/mt on Dec. 21, up 20.6% compared to the level on Dec. 21, 2020, the Shanghai Futures Exchange data showed.

Alumina imports

China's alumina imports reached 157,891 mt, down 28.1% from October, registering a fourth monthly decline, customs data showed.

Prices remain on a downtrend due to oversupply in domestic markets while aluminum prices continue to decline over the past few weeks, market sources said.

China's alumina imports in December may not see any significant increase, as oversupply continues to weigh on domestic alumina price, sources said.

There is a limited impact on the production of domestic refineries due to the ongoing winter heating season, while some refineries in northern China have started resuming capacity idled earlier in the year, indicating decent production support in the near term, according to sources.

In November, the volume imported from Australia — the largest exporter to China — fell 47.6% from a month earlier, to 62,500 mt. Imports from Australia accounted for 39.6% of China's total alumina imports.

Australian alumina was at a $10/mt discount to Chinese production on import-parity terms Dec. 20, up from a discount of $34/mt available Dec. 19, S&P Global Platts data showed.

The discount calculation was based on Dec. 20 assessments by Platts of Australian alumina at $346/mt FOB Australia and China's spot alumina at Yuan 2,840/mt ex-works Shanxi. Calculations also include a freight rate assessment of $44.65/mt to ship 30,000 mt from Western Australia to Lianyungang, China, Platts data showed.