Stock Markets June 9, 2026 07:37 AM

Morgan Stanley: China’s Aluminium Exports Surge as Middle East Disruptions Tighten Markets

May exports hit highest level since November 2024 while mixed trends persist across other bulk metals

By Leila Farooq
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Morgan Stanley data show China’s aluminium and product shipments climbed 16% year-over-year to 632,000 metric tons in May, marking the strongest monthly export total since November 2024. The rise comes amid Middle East supply disruptions that lifted London Metal Exchange prices and widened the export arbitrage for aluminium. Steel exports fell 2% year-over-year, while copper, iron ore, and coal flows showed varied month-over-month and year-over-year movements.

Morgan Stanley: China’s Aluminium Exports Surge as Middle East Disruptions Tighten Markets
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Key Points

  • China’s aluminium and aluminium product exports rose 16% year-over-year to 632,000 metric tons in May, the highest monthly total since November 2024.
  • Steel exports were down 2% year-over-year in May, though monthly steel shipments improved 9% sequentially to 10.3 million metric tons; first-five-months 2026 steel exports totaled 44.6 million metric tons, down 8% year-over-year.
  • Imports showed varied patterns: copper imports were 446,000 metric tons in May (down 1% month-over-month, up 4% year-over-year) with the Yangshan premium between $60 and $75 per metric ton; iron ore was 98 million metric tons (down 6% month-over-month, flat year-over-year); coal was 33 million metric tons in May (up 1% month-over-month, down 8% year-over-year), with year-to-date coal imports at 183 million metric tons, down 3% year-over-year.

China’s outbound aluminium volumes increased markedly in May, with combined exports of aluminium and aluminium products reaching 632,000 metric tons, a 16% gain compared with the same month a year earlier and the largest monthly total since November 2024, according to Morgan Stanley data released Tuesday.

The bank attributes part of the move to supply disruptions in the Middle East that have tightened markets outside China. Those developments pushed London Metal Exchange prices higher and expanded the export arbitrage for aluminium, making shipments from China more commercially attractive. At the same time, Chinese aluminium inventories have started to decline, a trend that has coincided with a pickup in semi-finished product shipments abroad.

Steel shipments painted a different picture. Steel exports in May were down 2% year-over-year, even though monthly totals improved on a sequential basis. May steel exports amounted to 10.3 million metric tons, a 9% increase month-over-month. Morgan Stanley noted that the month-on-month improvement likely reflects a low comparative base in April. Cumulative steel exports for the first five months of 2026 stood at 44.6 million metric tons, representing an 8% decline relative to the same period last year.

Other major commodity flows showed mixed signals. China’s imports of copper and copper products totaled 446,000 metric tons in May, a 1% decline from April but a 4% rise from May of the prior year. The Yangshan premium, a gauge of physical demand in China’s import hub, traded in a range between $60 and $75 per metric ton during the month, indicating continued robust physical interest.

Iron ore arrivals in May were recorded at 98 million metric tons, down 6% month-over-month and essentially flat on a year-over-year basis. Coal imports fell 8% versus May of last year but increased slightly month-over-month by 1%, reaching 33 million metric tons in May. Year-to-date coal imports totaled 183 million metric tons, a 3% decline compared with the same period last year.


Taken together, the data depict stronger export momentum for aluminium amid tightening external markets, contrasted with softer performance in steel exports year-to-date and mixed import trends across other industrial commodities.

Risks

  • Ongoing supply disruptions in the Middle East could continue to influence external metal markets and price dynamics, affecting metals exporters and physical market participants.
  • A reduction in Chinese aluminium inventories as semi-finished product exports rise could tighten domestic availability and influence price volatility for downstream manufacturers and commodities traders.
  • Persistently lower year-to-date steel exports may reflect demand or competitive pressures, presenting uncertainties for steel producers and related industrial sectors.

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