China bauxite imports exceeded 100 million mt in 2019, up 21.91%YoY

SHANGHAI, Feb 24 (SMM) – China imported 100.66 million mt of bauxite in the year of 2019, rising 21.91% from 82.57 million mt in 2018 to exceed the 100 million mt level for the first time, according to China customs data under HS code 26060000.

Last year, the Republic of Guinea, Australia, and Indonesia remained the top three bauxite exporters to China, with their combined volume accounting for over 94% of the China’s total bauxite imports.

Guinea’s bauxite exports to China increased 16.49% from 2018 to 44.45 million mt, as low-temperature ore originating from this country was favoured by most of alumina refineries in Shandong due to rich reserves and cost efficiency and its popularity extended to Shanxi and Henan in 2019.

China’s imports of bauxite from Australia expanded 21.08% to 36.04 million mt, as demand from refineries in coastal regions in Shandong and Inner Mongolia held stable and that from northwest China such as Chongqing grew. Future demand growth for Australian bauxite will depend on those regions.

Indonesia’s bauxite exports to China jumped 91.16% to 14.41 million mt, as Indonesian gibbsite-type bauxite, having a high alumina-to-silica ratio and low organic content, was favoured by some alumina refineries in Shandong and Shanxi.

The rest 6% of China’s bauxite imports in 2019 originated from Malaysia, Brazil, Solomon Islands, the Republic of Montenegro, Jamaica, India, Turkey, Ghana, Vietnam and Sierra Leone etc.

Bauxite from Brazil, Ghana and Sierra Leone has a good quality, but is also expensive. Some Chinese alumina refineries will buy when sea freight charges are low and add a small amount of such material in production. Malaysia loosened its export policy last year, but its bauxite exports to China did not expand as Chinese refineries blended Malaysian bauxite with other ore.

Imports of bauxite from other countries stood at less than 10,000 mt per month on average, and most of those materials were non-metallurgical grade.

More alumina refineries in China began to use imported alumina last year, as inland plants upgraded their facilities and techniques. The SMM survey showed that 47% of alumina capacity in China used imported bauxite in 2019.

Chalco Zhongzhou, SPIC Shanxi, Henan Wangji, East Hope in Jinzhong, Sanmengxia Kaiman and Tianyuan Chemical have changed some of their production lines to low-temperature mode.

East Hope in Jinzhong, Chalco Mining and Guizhou Qiya adopted the process that bauxite is added in the later stage.

Guangxi Xinfa, Shanxi Fusheng, Xing’an Chemical and Chalco Huaxing blended bauxite together to produce alumina.

China’s bauxite imports are likely to continue to stand above 100 million in 2020, with Guinea, Australia and Indonesia remaining the major exporters. Prices and volumes of imported bauxite are expected to be sensitive to weather, political and policy stability in bauxite exporters, sea freight charges, and the progress in technological upgrading at Chinese alumina refineries.