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India’s refractory-grade alumina import drops as China ups ante on its anti-pollution drive

AL Circle

India’s refractory raw material imports have been hit badly ever since China declared war against its polluting industries. The slump in the imports of fused and calcined alumina have left domestic refractory manufacturers struggling to meet demand from the core user industries such as aluminium, steel, glass and cement.

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The non-ferrous industry in India of which aluminium is a significant stakeholder accounts for about six per cent of the refractory raw material consumption.

Going by the overall alumina import statistics, India remains the top importer from China with volume of alumina imported reaching 46854 tonnes in 2015. In 2016, total alumina import from China was estimated to reach 51441 tonnes. The global export-import data reveals the following quarter-over-quarter alumina import trend in India since Q1 FY 2016-2017.  

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However, with China stepping up its anti-pollution rules and regulations, the real trend has somewhat reversed, moving downward.  China’s new environment tax policy has forced the raw material suppliers there to scale down production. The calcining and processing plants in Tianjin and Shanxi have also been impacted rather severely.

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The refractory industry in India which imports almost half of its raw material from China is now bracing for the shortage in fused and calcined alumina supply.  Experts believe that this refractory industry logistic challenge could adversely impact the construction of major infrastructural projects.

“It is a wake-up call for the refractory industry in India,” Hakimuddin Ali, chairman of Indian Refractory Makers Association said. “We reviewed the crisis and made an assessment of the situation likely to emerge in the near future due to our over-dependence on China. For the first time, we have also initiated a dialogue with the steel and mines ministries to explore and develop alternative sources of raw materials and mines in India.”  

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