Chinese exports of aluminium 'semis' to drop as global prices fall

Chinese exports of semi-finished aluminium products are likely to drop in coming months as prices in the international market fall, industry sources and traders said.

Exports of the semis, including profiles and plates, have been blamed as a factor for lower global premiums on primary aluminium. Lower availability could stop the premium from falling further, traders said.

"Semis exports would fall later because LME aluminium prices have fallen," said a trader at a Chinese state-owned primary aluminium producer that also makes plates and exports the product.

He added that exports in May had still been strong because those shipments had been booked a month or two before delivery.

A trader at a Western producer of aluminium semis said overseas buyers would not buy more Chinese products because those products were no longer cheap.

Exports of semis are typically priced on the cash value of London Metal Exchange aluminium and a processing fee for turning primary metal into the products.