Vietnam set to double its alumina export as Vinacomin starts bulk shipments from May ‘17

Vietnam, the emerging alumina producing hub on the shores of the South China Sea, has increased its offshore alumina sales over the last three years. As suggested by the available international trade data, alumina export from the country has more than doubled since 2015. The increase has been made possible due to enhanced overseas sales activities of Vinacomin, Vietnam’s largest mining company.

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As per data, Vietnam exported 887061 tonnes of alumina in 2016. The quantity is 82 per cent higher than the volume exported in 2015. Vietnam’s total alumina export in 2015 stood at 485190 tonnes. In 2017, the country is estimated to export 1099023 tonnes of alumina.

Vietnam being an export driven economy depends significantly on the revenues generated from its mineral exports. The country’s earnings from alumina export have increased satisfactorily during the three-year period, data shows.

Vietnam exported US$165 million worth alumina in 2015, which increased to reach US$308 million in 2016. In 2017, the value of export is estimated to reach US$425 million, up 38 per cent year-on-year.

China (714998 tonnes), India (148854 tonnes), Turkey (21934 tonnes), Japan (820 tonnes), and South Korea (449 tonnes) were the top importing countries of Vietnamese alumina in2016. In March this year, the country exported 67,297 tonnes of alumina to China down 0.11 per cent from the corresponding period previous year. During the initial three months of 2017, total exports from Vietnam to China totalled 113,038 tonnes, showed data released by the General Administration of Customs China on April 25.

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Vietnam started exporting its alumina produce from the year 2012. Since then the country has increased its overseas sales base considerably. In a recent development, Vinacomin has decided to change the terms of its alumina sales contracts, giving the seller rather than buyer, the option of shipping in bulk or bags. According to a Platts report, Vinacomin’s ability to ship in bulk would depend on “shipping times” and “logistic conditions.”

China is one of few exceptions to this change. A large number of Chinese smelters are deeply inland; hence, they would continue to transporting alumina packed in bags, transported by trucks, the report stated.