Page 7 - Bauxite Resources Annual Report 2014

IMPROVING CONDITIONS
FOR BAUXITE
During 2013 bauxite inventories held in
China saw a substantial increase due
to the threatened ban on exports of
bauxite and nickel ore from Indonesia.
Imports into China increased to 71.5
million tonnes (Mt) in 2013 (39.7Mt
in 2012) of which 48.7Mt was from
Indonesia (28.7Mt in 2012). On January
12, 2014, the Indonesian President
announced the immediate ban on all
bauxite exports from Indonesia. Whilst
8.3Mt was received in China from
Indonesia in January and February 2014
these vessels had already left Indonesia
prior to the ban.
It is estimated some 12 months of
supplies of bauxite had been stockpiled
in China during 2013. Since January
2014 bauxite imports into China have
stabilised back to the 2012 levels and
stockpiles have significantly decreased.
As a result we have seen a steady
strengthening of the Chinese bauxite
price above US$60 per tonne, cost,
insurance and freight (CIF) included.
Average prices on spot cargoes as at
July 2014, is over US$60 per tonne
even with the current stockpiles.
Source: Antaike Alumina and Aluminium Monthly Aug 2014 No. 212.
Chinese Bauxite Import and Average Price (CIF to Chinese Port)
“Demand for bauxite is
predicted to increase
as consumption of
aluminium continues
to grow. Aluminium
consumption is growing
faster than any other
metal with China
dominating aluminium
production.”
Annual Report 2014 Bauxite Resources | 5