25 JUNE 2014www.bloomberg.com
China turns to India, Australia to fill gap for bauxite
Edited by : AL CIRCLE
2 min read
China’s imports of bauxite from India and Australia increased in May as buyers in the biggest consumer of commodities sought to fill the gap caused by Indonesia’s ban on shipments. Bauxite shipments from Australia rose 21 percent from April to 1.24 million tons.
Indonesia accounted for more than 10 percent of global bauxite supplies before imposing its ban earlier this year to foster a local refining industry, analysts at Goldman Sachs Group Inc. estimate. The Southeast Asia nation was also the biggest source of ore used by China to produce nickel pig iron, a lower grade alternative to refined metal used to make stainless steel.
“More Chinese smelters are replacing Indonesian ores with material from the Philippines,” said Chen Ruikan, an analyst at SMM Information & Technology Co. in Shanghai. Indian bauxite is also emerging as a substitute for Indonesian shipments and Australia is also increasing cargoes, according to Ye Yonggang, an analyst with Jinrui Futures Co. in Shenzhen.
China’s bauxite shipments in May were 44,968 tons, down 91 percent from April according to customs data.
Indonesia is poised to maintain export restrictions on raw ores as Joko Widodo and Prabowo Subianto, both candidates in the nation’s July election, support the policy.
Indonesia accounted for more than 10 percent of global bauxite supplies before imposing its ban earlier this year to foster a local refining industry, analysts at Goldman Sachs Group Inc. estimate. The Southeast Asia nation was also the biggest source of ore used by China to produce nickel pig iron, a lower grade alternative to refined metal used to make stainless steel.
“More Chinese smelters are replacing Indonesian ores with material from the Philippines,” said Chen Ruikan, an analyst at SMM Information & Technology Co. in Shanghai. Indian bauxite is also emerging as a substitute for Indonesian shipments and Australia is also increasing cargoes, according to Ye Yonggang, an analyst with Jinrui Futures Co. in Shenzhen.
China’s bauxite shipments in May were 44,968 tons, down 91 percent from April according to customs data.
Indonesia is poised to maintain export restrictions on raw ores as Joko Widodo and Prabowo Subianto, both candidates in the nation’s July election, support the policy.
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