China’s imports of bauxite rose to a 3-month high in July as companies accelerated stockpiling of the raw material before Indonesia’s possible ban on exports.
Inbound shipments surged by 370.9% year-on-year to 6.5 million tonnes in July, and totaled 39.2 million tonnes in the first seven months, up 46.5% from a year ago, according to customs data.
A lion’s share – 64.8% - of China’s bauxite imports year-to-date came from Indonesia, while 20.5% from Australia and 11.1% from India, the data showed.
Prices for imported bauxite largely rose in July compared with a year earlier. The average CIF price of Indonesian bauxite increased to $ 54.1 per tonne and that of Australian bauxite also climbed to $ 59.5 per tonne.
Chinese alumina producers who rely on imported raw material started to increase imports after Indonesia announced in May 2012 that it would impose an export tariff on 14 types of ore, including bauxite. At the same time, traders in Indonesia hastened outbound shipments before their export quotas expire if a ban comes into force.
The Indonesian government has not yet made it clear whether it will impose an outright ban in 2014, while enterprises in China and other countries have been trying to negotiate with the Southeast Asian country. For instance, China Hongqiao Group Ltd. is negotiating with Indonesian government to allow it export bauxite with tax exemptions.
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