COVID lockdowns have slowed China’s economy to a crawl, weighing on metals demand. Relative to other metals, aluminum, copper, and steel have the most significant export volumes. Exports for aluminum, copper, and steel are rising as metals demand has slowed.
Aluminum |
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Steel |
SHFE prices rallied during the pandemic, as global demand remained elevated. However, prices have come off the March highs. |
China’s aluminum production remains near all-time highs. |
Even before COVID’s resurgence and subsequent lockdowns, exports were on the rise. They have increased in late 2021 and into 2022. |
During the pandemic, SHFE copper rallied alongside aluminum. Copper prices have been more resilient than aluminum and remain near recent highs. |
Despite a slowing economy, Chinese copper production continues to climb. |
Seasonally unwrought copper exports normally jump in March; however, this year’s increase was higher than usual in both volume and percentage. |
Unlike copper and aluminum, Chinese steel production dropped tremendously during the pandemic. Production is recovering but is still nearly 10% off pre-COVID highs. |
China’s steel exports are bouncing off recent lows. |
