China's aluminium importers pulled back sharply in June as soaring international prices made foreign metal too expensive, shifting trade dynamics across Asia. Main Developments Unwrought aluminium and product imports fell 17.4% year-on-year to 250,000 metric tons in June, according to China's General Administration of Customs. First-half 2026 imports totaled 1.88 million tons, down 5.1% from the same period last year. Higher prices on the London Metal Exchange (LME) and widening physical premiums created an unfavorable arbitrage for Chinese buyers during the second quarter, traders reported. The benchmark three-month LME aluminium contract hit a four-year high of $3,724 a ton in early June before ending the month down nearly 16%. Read also: Why Iran's New Attacks on Gulf States Signal a Wider War Background Middle East supply concerns drove the LME price spike, while Russian producer Rusal redirected some shipments from China to Japan and other Asian markets offering higher premiums. Japanese buyers agreed to a $395-per-ton premium over the benchmark for third-quarter shipments, up 13% from the already elevated $350 premium in the second quarter. China's domestic production remained strong at 3.98 million tons of primary aluminium in June, up 4.7% year-on-year, according to the National Bureau of Statistics. Bauxite imports, the raw material for aluminium, rose 12.6% in June to 20.32 million tons, with first-half imports reaching 120.93 million tons—up 17.4%. Why It Matters The import decline signals shifting global trade flows as Chinese smelters rely more on domestic metal while high overseas prices and premiums push exporters toward other Asian markets. Meanwhile, China's own unwrought aluminium and product exports climbed to a record high in June, underscoring its dual role as both a major producer and exporter. What's Next Market observers will watch whether LME prices stabilize or fall further, potentially reopening the import arbitrage for Chinese buyers. Bauxite imports are expected to remain elevated as China continues expanding domestic smelting capacity to meet demand.