Annual jump in China’s EV output

Chinese production of new energy vehicles rose 31.9% year-on-year in May, according to the latest data from the China Association of Automobile Manufacturers.

The number of units manufactured increased from 712 660 in May 2023 to 940 000 for the same month this year. China uses the term NEV to designate vehicles that are fully or predominantly powered by electric energy. This includes plug-in, hybrid and fuel cell as well as the conventional batteries.

The data is quoted by Shen Dong, of OmniSource in the US, in a report included in the latest non-ferrous ‘Mirror’ from the Bureau of International Recycling.

Higher aluminium demand

Dong, a member of the BIR non-ferrous board, says that aluminium consumption by the automotive sector is expected to increase, mainly because NEVs demand lighter body weights.

NEV manufacturers are expected to consume an estimated 10 million tonnes of aluminium annually by 2030.

He adds: ‘Proposed revisions affecting China’s recycled raw material imports, including for copper, brass and aluminium, are at the final stage of drafting whereby suggested new categories will be added to the current policy. The revision is pending approval.’

Indian growth

Fellow board member Anirudha Agrawal says India’s growth momentum remains resilient because of retail spending, private capital expenditure and government investment in infrastructure.

In other developments, he notes the government has mandated conformity to the Bureau of Indian Standards (BIS) for stainless steel and aluminium utensils.

Meanwhile, Agrawal adds, increased shipping costs into India have been driving up aluminium scrap prices, thereby negatively affecting recyclers’ margins. However, there is no shortage of scrap.

Another board member, Stella Ying Wang, reports that China’s stringent scrutiny of ‘Certificates of Origin’ and export qualifications relating to aluminium ingots has compelled Malaysia to ensure compliance and transparency.

The measures require comprehensive documentation, including proof of manufacturing locations, production processes and material sources, to verify the origin and standards of Malaysian aluminium ingots.

Credibility

She notes the pace of Malaysian aluminium ingot exports to China has slowed considerably and warns the stringent inspections have also raised doubts over the reliability and credibility of the Certificates of Origin issued by Malaysia.

‘Scepticism among Chinese buyers could undermine trust and confidence, potentially impairing Malaysian processors’ competitive edge in the Chinese market.’

‘In this complex environment, Malaysian processors need to enhance their documentation processes, invest in greater transparency measures and possibly seek closer collaboration with both the Malaysian and Chinese authorities.’