China is helping ease a global aluminium supply squeeze caused by disruptions in the Gulf linked to the Iran war, with exports of aluminium products rising sharply.
The world’s largest aluminium producer has increased shipments of primary aluminium, alloys and semi-finished products as domestic demand weakens while production remains near record levels.
Chinese exports of aluminium alloys nearly doubled to 238,500 tonnes in the first six months of 2026, while semi-finished aluminium exports rose 18% year-on-year to 3.2 million tonnes. June alone saw a record 695,000 tonnes of semi-finished products shipped abroad.
The increased exports are providing relief to Western markets affected by lost Gulf production. However, the trend could create longer-term problems for Western manufacturers as more aluminium-processing activity shifts to China.
China’s domestic aluminium demand has remained weak, particularly in the construction sector, while primary production increased by 2.2% in the first half of the year.
The increased Chinese supply has also helped cool aluminium prices. The three-month London Metal Exchange price fell from a four-year high of $3,787.50 per tonne in early June to about $3,270.
While China’s exports are helping stabilise the global market in the short term, continued dependence on Chinese aluminium products could increase pressure on Western manufacturers and intensify trade tensions over China’s role in global aluminium supply.
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