Global Aluminum Rally Could Draw Record Exports From China

212)87703(quivjlud2(k1xu_media_dl_1.png London Metal Exchange, Shanghai

Article content

(Bloomberg) — The rally in the global aluminum market could spur record outflows from China, where elevated prices are capping consumption.

Article content

Aluminum on the London Metal Exchange is trading at its steepest premium to Shanghai futures since March 2022, after the war in the Middle East choked supplies from a key producing region and created a deficit on the international market.  

Article content

Article content

Article content

Chinese exports rose 15% in April to 598,000 tons, the highest since November 2024. They could climb further to a record of more than 680,000 tons in the coming months, said Zhu Liangmin, an analyst with researcher Beijing Aladdiny Zhongying Business Consulting Co. 

Article content

Article content

Aluminum rods for power grids — exempted from a recent tightening in China’s export rebates — and alloys used in wheels, are seeing particular demand, he said.

Article content

Although prices in China have been dragged higher by the LME’s surge, as the largest producer it’s largely immune from the shortage, particularly given a slowing economy and tepid domestic demand. 

Article content

Many fabricators in the production hub of Henan province are running at full capacity to meet brimming orders for products such as ultra-thin battery foil, according to a local media report. It cited an executive at Henan Mingtai Aluminum Industrial Co., who reported a jump in overseas sales in the second quarter.

Article content

LME prices have hit four-year highs in recent days, but one complicating factor is that some of those gains have been driven by fears that Chinese supply could tighten if smelters are forced to cut output to meet the government’s energy use and emissions targets.

Article content

Article content

On the Wire

Article content

China’s industrial companies saw their profits soar at the fastest in more than two years, lifted higher by demand for artificial intelligence-related goods and a surge in oil prices stemming from the Iran war.

Article content

China’s new mandatory safety standards for photovoltaic modules are expected to accelerate the phase-out of substandard capacity and drive industry upgrades, according to Shanghai Securities News. Solar shares rallied.

Article content

China’s deadliest mining disaster in years wasn’t necessarily a failure of a nationwide safety drive.

Article content

This Week’s Diary

Article content

(All times Beijing)

Article content

Wednesday, May 27

Article content

Article content

Thursday, May 28

Article content

Article content

Friday, May 29

Article content

Article content

Saturday, May 30

Article content

Article content

Sunday, May 31

Article content

Article content