China's Demand for Bauxite to Increase 50.9%

Bauxite, an aluminum ore, is the world's main source of aluminum. Wan Ling, an analyst from CRU points out in a research report that Malaysia bauxite export volume increased to 8,000,000 tons this year, influenced by China's increasing market demand, and that Malaysia has partly replaced Indonesia as China's bauxite supplier.

Statistics from China Customs indicate in February, China imported 690,322 tons of bauxite from Malaysia, which doubled compared with the import volume in January. Total import volume last year was 3,270,000 tons.

Analysts say that bauxite from Malaysia can only meet China's demand in a short period, while the demand in the next year will be met by Australia, West Africa, Central and South America. In the years to come, China's demand for bauxite provided by the third party suppliers is predicted to increase 50.9%, reaching 51,400,000 tons. The third party suppliers refer to independent mining dealers and welding factories that sell overstocked bauxite. Meanwhile, China aluminum oxide refineries are increasing yields to meet increasing demand of aluminum smelting plants.