China turns to Australia for more bauxite

Australia has been exporting more bauxite to China after Indonesia began limiting exports of raw ore last year.

Vessel-tracking data from IHS Maritime's Market Intelligence Network show six ship calls at Australian bauxite ports Weipa and Gove in January.

In total, 496,643 tonnes of bauxite were shipped from the two ports last month.

In the same month last year, six ships transported 387,812 tonnes of bauxite from the two ports.

Due to deeper draught limits, Panamax bulkers have been shipping Australian bauxite. Supramaxes are the main means of shipping Indonesian dry bulk cargoes.

Chartering managers told IHS Maritime besides the loss of Indonesian supply, Winning Shipping, which specialises in shipping bauxite to China, has been seeking alternative supplies from Australia and the Dominican Republic in the wake of the sinking of the Gearbulk-owned Supramax bulker Bulk Jupiter last month.

Bulk Jupiter was carrying bauxite from Kuantan, Malaysia, to China, when it sank, prompting several protection and indemnity clubs to issue warnings about liquefaction risks in bauxite.

"Cargoes from Australia tend to be safer because the Australian Maritime Safety Authority is very vigilant," said one chartering manager.

The Gove and Weipa bauxite mines have among the world's highest grade deposits of the aluminium-making ingredient. Pacific Aluminium owns the Gove facility while Rio Tinto owns the Weipa mine.