China Aluminium Supply and Policy Shifts
Key Questions
What is causing the recent surge in China's unwrought aluminium alloy exports?
Exports of unwrought aluminium alloy hit a multi-year high in April, rising 179.7% year-over-year to 46,300 tonnes. Rising output driven by profits and supportive tax policies have contributed to this increase while imports have declined sharply.
How will the removal of export tax rebates impact China's aluminium sector?
The policy change, set for end-2024, aims to reduce low-value exports and promote domestic processing of aluminium products. This shift is expected to curb excessive outflows and encourage higher-value activities within China.
Why have alumina imports reached an 11-year high in China?
Alumina imports have surged due to expanding aluminium output and strong profit margins in the industry. This trend supports increased smelting capacity amid favorable market conditions.
Can China's aluminium overcapacity help with renewable energy grid balancing?
China's aluminium overcapacity offers potential as a flexible asset for renewable grid balancing through adjustable smelter demand. This approach could improve integration of variable renewable sources into the power system.
What recent export volumes have been reported for China's aluminium wire and cable products?
China exported approximately 198,000 tonnes of aluminium wire and cable in the first nine months of 2025. Tax policies have played a key role in fueling this growth in exports.
Output rising on profits; alumina imports surge to 11-year high. Unwrought alloy exports hit multi-year high (+179.7% YoY April) while imports slump. Removal of export tax rebates end-2024 aims to curb low-value exports and boost domestic processing.