23 JULY 2014www.tradewindsnews.com
Bauxite imports surge in China
Edited by : AL CIRCLE
2 min read
China saw imports of bauxite jump nearly 40% last month, but the figure was still well down on pre-Indonesian ban highs.
The world’s largest importer of the aluminium making ingredient imported 2.9mt of bauxite in June, according to shipbroker SSY.
While it is a significant increase on previous months this year it is still well below the year-to-date high of 8mt achieved in January.
Indian bauxite exports to China rose to their highest level in 12 months in June at 800,000t, up 46% month-on-month.
Imports of bauxite from Australia also increased in June, up 14% year-on-year to 1.4mt, according to SSY.
In January 2014, Indonesia introduced new regulations banning the export of unprocessed minerals such as nickel ore and bauxite.
China imported significant volumes of bauxite in anticipation of the ban, but its imports from Indonesia have plummeted since then.
The impact of this ban in terms of seaborne dry bulk trade has been significant with Indonesian exports making up 65% of the global bauxite trade last year.
Since then China has sought a variety of alternative bauxite suppliers, such as Australia, India, Guinea and the Dominican Republic.
These countries accounted for 90% of Chinese bauxite imports in May 2014, compared to 36% in May 2013, according to Clarkson Research Services.
“In the short-term, extremely limited bauxite cargoes from Indonesia as a result of the ban may continue to have a negative impact on panamax and handymax demand,” the shipbroker said.
“Given that it currently looks unlikely that the ban will be reversed or relaxed later this year, global trade in bauxite is currently projected to decline 28% in full year 2014.”
Clarksons added that while Indonesia’s restrictions have led to greater Chinese investment into bauxite mining in Africa and bauxite refinery capacity in Indonesia, the bauxite trade is likely to continue to be hampered in the short-term.
“In the longer-term, it is expected that China will import bauxite from more distant sources,” the shipbroker said.
The world’s largest importer of the aluminium making ingredient imported 2.9mt of bauxite in June, according to shipbroker SSY.
While it is a significant increase on previous months this year it is still well below the year-to-date high of 8mt achieved in January.
Indian bauxite exports to China rose to their highest level in 12 months in June at 800,000t, up 46% month-on-month.
Imports of bauxite from Australia also increased in June, up 14% year-on-year to 1.4mt, according to SSY.
In January 2014, Indonesia introduced new regulations banning the export of unprocessed minerals such as nickel ore and bauxite.
China imported significant volumes of bauxite in anticipation of the ban, but its imports from Indonesia have plummeted since then.
The impact of this ban in terms of seaborne dry bulk trade has been significant with Indonesian exports making up 65% of the global bauxite trade last year.
Since then China has sought a variety of alternative bauxite suppliers, such as Australia, India, Guinea and the Dominican Republic.
These countries accounted for 90% of Chinese bauxite imports in May 2014, compared to 36% in May 2013, according to Clarkson Research Services.
“In the short-term, extremely limited bauxite cargoes from Indonesia as a result of the ban may continue to have a negative impact on panamax and handymax demand,” the shipbroker said.
“Given that it currently looks unlikely that the ban will be reversed or relaxed later this year, global trade in bauxite is currently projected to decline 28% in full year 2014.”
Clarksons added that while Indonesia’s restrictions have led to greater Chinese investment into bauxite mining in Africa and bauxite refinery capacity in Indonesia, the bauxite trade is likely to continue to be hampered in the short-term.
“In the longer-term, it is expected that China will import bauxite from more distant sources,” the shipbroker said.
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