China's Aluminium Exports Down 8.10%

SHANGHAI -- China exported 1.212 million tonnes of aluminium in 2006, down 8.10% from last year, according to statistics released by the General Administration of Customs yesterday.

Alumina imports fell 1.50% to 6.91 million tonnes in 2006.

The following tables specify China's aluminium and alumina exports & imports for December and the whole of 2006.

Aluminium futures at Shanghai Futures Exchange settled down in modestly active trading on Tuesday, mainly affected by copper's prices drop of 4%, analysts said.

"The prices might drop to around RMB18,000 ($2310.65) to 18,500 ($2374.84) before and after the Spring Festival amid more sales pressure in the market," said analyst Huang. He explained that aluminium companies normally want to sell more before the Spring Festival in order to prepare bonuses for their stuff.

Commentary

Over the past year China has substantially expanded its domestic production capacity and, similar to the steel industry, now relies upon the export of value added finished products to sustain the industry. Equally, as with steel products, this will be of concern to its trading partners.

Aluminium is being squeezed on the short dated but remains weak. China import/export figures are price negative, so I wouldn't be a buyer at this level.