Malaysia’s bauxite export dropped more than 50% YOY in 2016

<p>Malaysia became one of the world&rsquo;s top bauxite producers and a leading supplier of bauxite to China&rsquo;s aluminium industry after Indonesia banned ore export in 2014. Over 2014-2015 the amount of bauxite shipped from Malaysia to China increased almost one hundred fold making Malaysia the largest exporter of bauxite to China.&nbsp;However, the scene took a turn when Malaysian government imposed a ban on the mining and export of bauxite in January 2016 putting a close on all irregular mining activities. Currently the moratorium stands valid till March 2017.</p> <p>{newsStudioGallery}</p> <p>An analysis of the trading patterns of bauxite in Malaysia will give an insight about this dramatic bauxite mining boom and the aftermath.</p> <p>In 2015, Malaysia exported 24.3 million tons of bauxite globally. Bauxite mining delivered US$1.1 billion revenue to the exporters. The top and exclusive importer of bauxite from Malaysia was China accounting for more than 99% of the export. India and Thailand are estimated to import a small amount from Malaysia in 2015.&nbsp;</p> <p><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/malaysia%20bauxite%20export.jpg" alt="News" width="517" height="226" /></p> <p>The Government of Malaysia put a halt on fresh export and ordered to clear about 10 million tons of bauxite stockpiled at the Kuantan port with immediate effect through issuing of Approved Permits (APs). Actual data shows Malaysia has exported about 5.4 million tons of bauxite from January to July 2016, only about half of the volumes shipped a year ago. The value of export stands at US$ 95 million. Considering the present rate of export the country is estimated to ship another 3.7 million tons of bauxite from August to December making it about 9.1 million tons for 2016. However, an estimate shows about 20 million tons of bauxite export from Malaysia in 2016.</p> <p>{googleAdsense}</p> <p>Actual data shows that it is just a clearance of the bauxite stockpiles in the port. The only country to import bauxite from Malaysia in 2016 is China. &nbsp;Indonesia, Hong Kong, Indonesia and Japan and Thailand contributed a negligible percentage of the total export.&nbsp;</p> <p>The environment ministry said that further extension of the moratorium till March 2017 was to allow legitimate miners to clear the stockpiles rather than as a response to the alleged fresh mining. This shows that Malaysia's bauxite exports to China have slipped since the moratorium, limited only to clearing of the stockpile of about 10 million tons of bauxite in the ports.&nbsp;</p>