Indian bauxite export registers quarter on quarter increase in FY 2017

<p>According to UNFC system, India has a total bauxite resource of 3,480 million tons which includes 593 million tonnes reserves and 2,887 million tonnes remaining resources. By grades, about 84% resources are of metallurgical grade. Odisha alone accounts for 52% of country's resources of bauxite followed by Andhra Pradesh (18%), Gujarat (7%).</p> <p>According to the latest report, the bauxite production in India stands at about 22 million tons, increased by 30% as compared to previous year, due to good demand in domestic market and also from China. Odisha emerged as the leading producing state accounting for about 35% of the total production. Next in the order of production is Gujarat (32%). However, the larger portion of bauxite export takes place from the West Coast.</p> <p>There are no policy restrictions on the export of bauxite in India. If we look at the export statistics of Indian bauxite FY 2016-2017, we can understand the changing trading patterns.&nbsp; The estimated bauxite export stood at 3.7 million tons in FY 2016-2017 and the total value of bauxite export was about USD 125 million. Exports were mainly driven by China (almost 84%).</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/india%20bauxite1.jpg" alt="News" width="488" height="294" /></p> <p>If we do a quarter on quarter analysis, we observe that India exported an estimated <strong>181828</strong> tonnes of bauxite in Q1 2016-17. In Q2, the amount increased to <strong>812488 tonnes. </strong>The last two quarters however saw a dramatic jump in bauxite export from India. In <strong>Q3</strong>, the estimated bauxite export stood at <strong>1.3 </strong>million tonnes and in<strong> Q4, </strong>the amount stood at about<strong> 1,3 </strong>milliontonnes.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/india%20bauxite2.jpg" alt="News" width="488" height="296" /></p> <p>The export value stood at <strong>USD 9.6</strong> million during the first half of the year and increased to about <strong>USD 94</strong> million in the second half of the year.</p> <p>The increase in export was driven by China as the country looked for alternative bauxite sources when Malaysia imposed a ban on bauxite mining and export in January 2016 creating a sudden lull in the hyperactive export market.</p> <p>{googleAdsense}</p> <p>Bauxite exporters from India have been demanding the removal of export duty on bauxite. During the last budget, the bauxite duty has been marginally reduced to 15%. According to All India Association of Industries Indian bauxite has substantial demand in the global market but, price of Indian bauxite becomes uncompetitive due to the extra custom duty. Since, most of the bauxite that gets exported is from Gujarat and is Bohemetic&nbsp;in nature; they are not of much use for the domestic aluminium producers.&nbsp;</p>