Chinese bauxite import volume from Brazil up by 246.4% YOY Jan-Aug
2016-10-13 09:25:27 [Print]
BEIJING (Asian Metal) 13 Oct 16 - According to China Customs, China imported around 2.37 million tons of bauxite from Brazil from January to August in total, up by 246.4% YOY. It is predicted the volume may reach 3.5 million tons in 2016.
Chinese bauxite import from Brazil (KT)
From this May, the import from Brazil jumped. On the one hand, freight cost was at a low level and Brazilian bauxite prices dropped significantly since early this year; and on the other hand, Guinean bauxite quality is not good and Chinese consumers need to buy high grade Brazilian bauxite Al 50% Si 4%.
In 2015, the price for Brazilian bauxite was around USD70-76/t CIF China, but dropped to USD48-50/t CIF China in early 2016. Although the price rebounded a bit to USD50-52/t recently, it remained at a low level. Given the recent alumina prices increase and freight cost rebound, the Brazilian bauxite price may rise above USD60/t CIF China in 2017.
New buyers and suppliers of Brazilian bauxite appeared in 2016. In 2015, Hydro Aluminum was the major supplier of Brazilian bauxite to China, but in 2016, Alcoa joined the team and may provide around 2 million tons this year, much higher than 1.5 million tons by Hydro. In 2017, Alcoa may increase export volume further to 2.5 million tons, but Hydro’s volume may be stable due to limited supply.
In terms of buyer in China, Chalco was the major one in 2015, but Weiqiao Aluminum joined in 2016. According to the data, from January to August, Chalco’s purchase volume accounted for 53.5% of total Brazilian bauxite volume, and 34.7% by Weiqiao Aluminum.
Malaysian bauxite mining ban continues, so in order to add enough stocks, more buyers may turn to Brazilian bauxite in Q4. Because of alumina market recovery, Chalco has resumed the alumina production line with capacity of 500,000tpy since early October. It is reported that Lubei Chemicals may also start its second production line with annual capacity of 500,000tpy in Q4. Therefore, demand for imported bauxite will continue to get improved.
Chinese bauxite import from Brazil (KT)
From this May, the import from Brazil jumped. On the one hand, freight cost was at a low level and Brazilian bauxite prices dropped significantly since early this year; and on the other hand, Guinean bauxite quality is not good and Chinese consumers need to buy high grade Brazilian bauxite Al 50% Si 4%.
In 2015, the price for Brazilian bauxite was around USD70-76/t CIF China, but dropped to USD48-50/t CIF China in early 2016. Although the price rebounded a bit to USD50-52/t recently, it remained at a low level. Given the recent alumina prices increase and freight cost rebound, the Brazilian bauxite price may rise above USD60/t CIF China in 2017.
New buyers and suppliers of Brazilian bauxite appeared in 2016. In 2015, Hydro Aluminum was the major supplier of Brazilian bauxite to China, but in 2016, Alcoa joined the team and may provide around 2 million tons this year, much higher than 1.5 million tons by Hydro. In 2017, Alcoa may increase export volume further to 2.5 million tons, but Hydro’s volume may be stable due to limited supply.
In terms of buyer in China, Chalco was the major one in 2015, but Weiqiao Aluminum joined in 2016. According to the data, from January to August, Chalco’s purchase volume accounted for 53.5% of total Brazilian bauxite volume, and 34.7% by Weiqiao Aluminum.
Malaysian bauxite mining ban continues, so in order to add enough stocks, more buyers may turn to Brazilian bauxite in Q4. Because of alumina market recovery, Chalco has resumed the alumina production line with capacity of 500,000tpy since early October. It is reported that Lubei Chemicals may also start its second production line with annual capacity of 500,000tpy in Q4. Therefore, demand for imported bauxite will continue to get improved.
Bauxite Australian Monohydrate 52%min CIF China
Unit:USD/dt
China bauxite producers' sales to production ratio statistics by province by month
Unit: %
