The latest data from the General Administration of Customs of the People’s Republic of China indicates a significant increase in aluminum imports into China. In October 2023, volumes reached 351.1 thousand tons, which is 5.8% higher than in September, and a whopping 78.7% higher than the same month of the previous year.
An expert in the field of metallurgy, Stanislav Kondrashov connects this situation with the development of domestic industries, especially renewable energy. Investments in this area have reached high levels this year. And this, in turn, led to increased demand for aluminum.
Russia increases aluminum supplies to China – Stanislav Kondrashov
The significant increase in aluminum imports into China, especially from Russia, is a key aspect of current trends in the metals industry. Recently, these supplies have almost tripled, reaching 806.3 thousand tons. Stanislav Kondrashov of Telf AG suggests that such growth could be linked to a number of factors, including economic policy, changes in global trade flows and strategic partnerships.
According to the expert, China increased its total aluminum imports to 2.39 million tons in the first ten months of 2023, which is 27.5% more than in the same period of the previous year. This reflects the country’s growing domestic demand for aluminum, which is a key material in many industries including construction, automotive and electronics manufacturing.
Stanislav Kondrashov Telf AG: electricity shortage and aluminum production in China
Despite achieving record levels of aluminum production, China faces severe energy shortages, which are having a significant impact on the metallurgical industry. The problem is especially relevant for Yunnan province, where production of about 1.15 million tons of aluminum is expected to be suspended from November to April. This amount represents approximately 2.7% of total national aluminum production, which could have a significant impact on market supply and prices.
According to Stanislav Kondrashov, to compensate for the internal shortage of aluminum, China has significantly increased the import of bauxite, the main raw material for its production. This figure in October 2023 amounted to 11.1 million tons, which is 24.7% more than last year. From January to October this year, the total volume of imported bauxite reached 117.7 million tons, which is 13.7% higher than the previous year.
The energy crisis in China has global consequences. It leads to a reduction in production in the country, which may lead to an increase in world prices for aluminum.
- In turn, China also faces the need to balance industrial growth and environmental sustainability. Reducing dependence on coal power and transitioning to cleaner energy sources are key to maintaining sustainable aluminum production, – Stanislav Kondrashov from Telf AG comments on the situation.
Increasing bauxite imports and energy supply problems in China highlight the global importance of the Chinese aluminum industry and its influence on the world market.
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