China’s aluminium wire exports soar 222.67% in May as exporters capitalise on tax incentives

China’s aluminium wire exports surged in May as rising aluminium prices and favourable trade incentives drove a sharp increase in overseas shipments.

Official customs data showed that exports of aluminium wire reached 50,224 tonnes in May, up 222.67 per cent from April and surpassed the combined 42,955 tonnes shipped during the first four months of the year. The sharp increase highlights how exporters are increasingly using the product to capture stronger international prices while benefiting from supportive trade policies.

The May surge lifted cumulative exports for the January-May period to 93,179 tonnes, putting shipments on track to surpass last year’s pace. The five-month total has already nearly matched the 94,369 tonnes exported during the first eleven months of 2025.

A combination of strong overseas prices and favourable export policies has been driving the surge.

Aluminium wire, widely used in power transmission and distribution networks, has increasingly become a preferred export product as producers seek to maximise returns from international markets. The trend accelerated amid a rally in global aluminium prices, which gained momentum during heightened geopolitical uncertainty in the Middle East.

Exporters also benefit from a significant policy advantage. Aluminium wire qualifies for a 13 per cent export tax rebate, while exports of unwrought aluminium remain subject to a 30 per cent export tariff according to Reuters.

The disparity has encouraged producers and traders to export aluminium in processed form rather than as primary metal, contributing to the sharp rise in shipments since April.