Chinese bauxite imports up but alumina plunges

China’s alumina imports fell 38.4% month-on-month in August, as record-high imports of bauxite tamed demand for alumina.

“Policy influenced China’s alumina imports this year. [Buyers] are scrambling to import bauxite due to fears that Indonesia’s [impending] ban on raw material export will make bauxite availability tight. This has resulted in decrease in alumina imports,” Yang Xiaoguang, an analyst at Jinrui Futures in Shenzhen, said.

China imported 144,354 tonnes of alumina in August, down 54.2% year-on-year. Bauxite imports were 6.9 million tonnes, up 7% month-on-month.

In the first eight months, monthly average for China’s alumina imports was 253,244 tonnes, plunging 39% compared with the monthly average of 418,261 tonnes last year.

China’s monthly average bauxite imports surged 73.9% to 5.81 million tonnes in the first eight months, compared with a monthly average of 3.34 million tonnes last year.

It is estimated that Chinese smelters import about 50% alumina for aluminium production and purchase the rest from the local market.

“Domestic alumina producers import 70% of the bauxite they need for production and the rest comes from the domestic market,” according to Xu Huimin, an analyst at Huatai Great Wall Futures in Shanghai, said.

Analysts said they expect China’s bauxite imports to return to normal levels for the long term.

“The Indonesia export ban should have some effect as China has been relying on its bauxite exports but globally bauxite is abundant. Besides, the current raw material inventory in China can last for at least half year,” Xu of Huatai said.

In August, China imported 33,380 tonnes of aluminium, down 45.5% year-on-year, and up 62% month-on-month.

Aluminium exports were 10,179 tonnes, up 13% year-on-year and a surge from 818 tonnes in July.

Secondary aluminium imports fell by 3% year-on-year but rose 14% month-on-month to 237,706 tonnes in August.