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Below are Views On China`s aluminium imports in March`21stood at 206,556 tonnes, up over 40 percent By Mr. Yash Sawant, Research Associate, Angel Broking Ltd.

China’s Aluminium imports surge

As per data released by the General Administration of Customs, China’s aluminium imports in March’21stood at 206,556 tonnes, up over 40 percent (month on month basis) & over 70 percent (year on year basis).

Solid domestic demand and mounting supply worries caused the recent surge in China’s Aluminium purchases. 

Also, boost in domestic demand reflecting the significant expansion in China’s manufacturing segment sent prices on the Shanghai Exchange higher in comparison to the overseas market, opening a brief arbitrage window in Mid-March’21 which triggered the Chinese traders.

Moreover, China’s move towards limiting their carbon emissions threatened the domestic supply chain for the light metal. 

The Chinese city of Baotou in Inner Mongolia, a major aluminium producing region, ordered some of the industrial production and power plants to shut down in order to comply with the energy consumption norms. Limited domestic output also led to the surge in Aluminium imports.

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