General Administration of Customs showed China’s bauxite imports continued to total above 10 million tonnes in August 2022. As per the data revealed, the country imported 10.75 million tonnes of the ore, which reflected an increase of 1.48 per cent month-on-month and 23.53 per cent over the year.
Guinea, Australia, Indonesia, and Montenegro were the key suppliers of bauxite to China in the said month. From Guinea, China’s bauxite imports in August stood 5.39 per cent higher month-on-month and 43.46 per cent year-on-year to 6.26 million tonnes. Newly established alumina refineries in China, such as Bosai, Wanzhou, and Wenfeng are using Guinea ore, contributing to the growth in bauxite imports. Moreover, due to the repeated ban on Indonesian bauxite exports, China’s domestic refineries have turned to Guinea as an alternative.
Australia, the next leading bauxite exporter to China, supplied 2.83 million tonnes in August 2022, down by 10.29 per cent month-on-month but up 1.56 per cent on the year. Compared to some of the major bauxite importing countries, Australia offers the most stable import price of the ore. In August, the average cost of imported bauxite from Australia was $46.2 per tonne. However, the organic content of Australia ores is relatively high, with relatively low A/S in some areas, which requires high red mud sedimentation. So, to use Australian bauxite, alumina refineries require having more sophisticated production and processing technology.
Imports from Indonesia stood at 1.61 million tonnes in August, up by 10.67 per cent M-o-M and 3.44 per cent on the year. However, the rumours of Indonesian bauxite export ban have been brewing since the end of last year, which is again expected to come into effect in early September.
Since there is no significant increase in the domestic bauxite supply, the new alumina refineries are banking on the imported ore. The imported bauxite market, which has long been a buyer’s market, has turned into a seller’s market this year, owing to soaring ore prices. Guinea’s bauxite price has risen 28 per cent year-to-date, Indonesian bauxite 21 per cent, and Australian bauxite 9 per cent.
In September, bauxite imports from Guinea, India, and Australia are expected to remain stable, with new suppliers coming up constantly.
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