SHANGHAI, Jan. 23 (SMM) – The CIF price for imported bauxite in China averaged USD 45.71/mt in 2012. SMM has confirmed that China’s imported bauxite price has been rising for four consecutive years, with CAGR at 12.66%.
The average CIF price for imported bauxite rose 7.07% YoY in China in 2012. The CIF price for Indonesian bauxite averaged USD 46.14/mt, up 6.53% YoY, and USD 53.65/mt for Australian bauxite, down 2.63% YoY.
Indonesia imposed 20% export tariff on 14 varieties of ores, effective May 6, 2012. The CIF price of Indonesian bauxite was USD 44.97/mt during the first five months of 2012, but rose to USD 51.78/mt during the remaining seven months after Indonesia raised its export tariff, an increase of 15.14%.
SMM understands two reasons were behind the rise in imported bauxite prices in China. First of all, China heavily relies on bauxite from other countries such as Indonesia, with demand growing each year. Second, prices of Indonesian bauxite, which takes up the biggest proportion of China’s imported bauxite, have been advancing every year, thus pushing up China’s overall imported bauxite prices. China’s reliance on imported bauxite will remain for the foreseeable future. Besides, the hike in export tariff on Indonesian bauxite and the country’s restrictions on raw ore exports will send Indonesian bauxite prices up further.