Chinese bauxite imports drop but alumina production unhindered

Shanghai Metal Market reports that China’s bauxite imports have plummeted by 64.24% year-on-year and 19.36% month-on-month bringing down the total import amount to 2.5 million in August but SMM assures, even such a drastic decline will not have any adverse effect on domestic alumina production.

SMM has investigated that most alumina refineries in China have enough bauxite reserves to carry out uninterrupted production for 8 months.

The year-on-year and month-on-month decline can each be attributed to different causes.

The primary cause for the year-on-year decline is the Indonesian ban on their bauxite export. The month-on-month drop however is caused by a fall in Indian bauxite imports, which fell from 910,000 tonnes in July to 350,000 tonnes in August.

This fall in imports is said to be die to unsatisfactory quality of bauxite and the cabinet’s nod of approval for increase in bauxite royalties making the materials less desirable to the Chinese refineries.

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