China’s bauxite imports rose to a record high in the first quarter of 2020, owing to greater demand and lower sea freight costs, found China customs data under HS code 26060000.
In the first three months of 2020, China imported 28.41 million tonnes of bauxite, the highest quarterly import volume on record. Compared to the bauxite imported in the fourth quarter last year, the volume in Q1 2020 was up by 26.01 per cent, and when compared to the first quarter of 2019, it was higher by 9.99 per cent.
The Republic of Guinea remained the top bauxite exporter to China, accounting for nearly half of China’s total bauxite imports. Guinea exported 13.37 million tonnes of bauxite to China in the first three months.
Australia and Indonesia were the second and third top exporters, supplying 9.24 million tonnes and 4.73 million tonnes, respectively. Australia’s exports to China increased 22.95 per cent year-on-year, while those from Indonesia jumped 46.45 per cent YoY.
The ramp-up of alumina refineries that have upgraded their facilities to adapt foreign ore, the decline in logistics costs caused by lower sea freight rates, and slower recovery of domestic mines due to the outbreak of COVID-19 were the three primary reasons behind the rise in demand for China's bauxite imports to an all-time high in Q1.
But now the appeal of imported bauxite has slowed down, as greater losses in domestic ore prices, and lower caustic soda and coal prices make the use of domestic bauxite more cost-effective. Moreover, 2 million tonnes per year of alumina capacity using imported bauxite have gone offline.
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