A poll of aluminium firms conducted by Reuters earlier this week found that the prevailing opinion is that a stronger demand from buyers in the People’s Republic of China coupled with a disruption due to coronavirus at overseas factories pushed both exports and imports of aluminium in and out of the country to higher rates than usual in November.
Per the news agency, exports of aluminium are estimated to have risen by 12 percent on the year last month, eclipsing the year-on-year improvement of 11.4 percent in October. Sales of household appliances to locked-down consumers around the world likely drove demand from overseas manufacturers up significantly, reversing a hefty drop earlier in the year.
Meanwhile, imports are projected to have risen by 6.1 percent on the year, besting October’s yearly rise of 4.7 percent. Demand from domestic manufacturers and a rise in commodity prices are cited as reasons for this expected jump.
According to a note published recently by China Minsheng Bank, European and American factories gained steam in November, and a sustained push for face masks and other medical supplies helped buoy aluminium exports last month.
“The substitution effect of China’s exports will continue to increase as supply capacity of emerging economies has not recovered yet.”
Similar surveys yielded similar results regarding Chinese exports, noted Reuters. However, some experts warned that a second wave of COVID-19 and resulting lockdowns may drag demand for Chinese manufactured goods down with it.