An Analysis on Global Bauxite & Aluminum Oxide Market

Accounting for an important share of global export of raw materials, global bauxite and aluminum oxide are important elements of global mineral trade. In 2013, dry goods remain the mainstay of dry bulk cargoes. The five major bulk cargoes (iron ore, coal, grain, bauxite, aluminum oxide, and phosphate ore) take up 44.2% (2,290,000,000 tons); dry goods and minor bulks together occupies 21% (1,400,000,000 tons).

Last year China's bauxite turnover increased 25.7%, calculated by ton per mile. Rapid growth in China's domestic aluminum oxide production capacity has driven the increase in freight transport. During the same period, China's low-grade bauxite ore and supply capacity was limited.

Most of China's bauxite is highly dependent on export. In 2014, Indonesia export suffered from close confinement, before which Indonesia's bauxite export accounted for 70% of China's total import volume. As a result, China has to find other import approaches, such as Australia, India, Guinea, and Guyana.

Although different exporters, such as Africa and Latin America, take up most of China's bauxite, these market can not meet the amount of decrease in Indonesia. Consequently, some Indonesian companies reveal that they plan to build aluminum oxide refining factories.

China is now confronted with over production of aluminum products. At the same time, China is expected to experience a deficit in the first quarter of 2015. Strong demand in China's aluminum oxide market is likely to affect the market trend in 2015. It is estimated that market demand for bauxite will reach 130,000,000 tons. To meet the increasing demand, 35,000,000 tons of bauxite needs to be imported.

Following are China's importing countries: (from 2009 to 2012)

Bauxite: Jamaica 45%, Guinea 24%, Brazil 21%, Guyana 4%, other countries 6%.
Aluminum Oxide: Australia 33%, Surinam 31%, Brazil 14%, Jamaica 10%, other countries 12%.
Total: Jamaica 30%, Brazil 18%, Guinea 18%, Australia 11%, other countries 23%.

With further development, bauxite in Malaysia will increase rapidly and export bauxite to China to fill the gap. 

Author: Liwei Chu
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