SHANGHAI, Nov. 27 (SMM) - SMM’s most recent survey reveals that China imported 1.05 million mt of Indonesian bauxite in October at an average USD 52.36/mt, up 19.86% YoY.
Indonesian bauxite prices rose sharply after the country restricted exports in June. An aluminum producer in Shandong indicated that production costs have risen RMB 120/mt after Indonesia imposed 20% ore export tariffs for alumina producers using imported bauxite.
SMM notes that there are two reasons why it is unlikely that the price of Indonesian bauxite will return to 2011 levels in the near term. First, the Indonesian government remains adamant in controlling its ore exports. Second, the demand for Indonesian bauxite from Chinese alumina producers remains robust inasmuch as it retains advantages in price, quality and reliable supply.
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