China’s Aluminium Imports Leap Amid Recovery and Sanctions

China, the leading global consumer of aluminium, has recorded a significant surge in its imports of the metal, as shown by recent customs data. The General Administration of Customs reported that March saw an 89.8% increase in imports compared to the previous year, with 380,000 metric tons of unwrought aluminium and related products entering the country.

The first quarter of the year marked a dramatic 92.3% rise from the same period last year, totaling 1.1 million tons. This growth is attributed to market anticipation of a demand spike in line with China's rebounding industrial activity. The positive trend was further supported by manufacturing activity which grew in March for the first time in six months.

Aluminium's diverse applications in sectors like construction, transportation, and packaging have traditionally driven its demand. However, notable consumption has also been rising within China's burgeoning solar and wind power sectors.

Significant amounts of aluminium have been arriving from Russia, which represents more than half of China's primary aluminium imports. March, in particular, witnessed an increase in shipments from Russia, with more expected to follow in the wake of new sanctions imposed on Russian metals by the U.S. and Britain. This is likely to direct additional Russian aluminium towards the Chinese market.

The influx of these imports has led to an accumulation of aluminium inventories in China, with stockpiles on the Shanghai Futures Exchange approaching a one-year high, having risen by 139.8% since the start of the year.

Conversely, the data indicated a slight dip of 1.4% in bauxite imports for March. Nonetheless, the first quarter figures show a 2.1% increase from the previous year, underscoring sustained growth in raw materials for aluminium production.

Details on the origins of March's imports are set to be released on April 20th, with a spotlight on the volumes sourced from Russia, which in the first two months already saw more than a twofold increase from the prior year.