★ Chinese inland demand for imported bauxite continues to rise for unstable local supply
Because of the tight local supply, Chinese inland alumina refineries from Henan and Shanxi increased bauxite import volume from the middle of 2018. Besides monohydrate bauxite from Turkey and Montenegro, they became active in buying bauxite from Guinea, Australia and Indonesia, etc.
★ Global bauxite channels diversifying and supply volume increasing
From 2018, Guinea and Australia witnessed more new bauxite suppliers and the overall production increased. Suppliers in Turkey and Greece started expanding production or improving bauxite quality. In Asian market, bauxite producers in Malaysia were ready for resuming production, and suppliers in Indonesia got new export quota for 2019.
★ Chinese aluminum smelters continue to build their own prebaked anode plants weighing on other plants
Aluminum smelters in Northwest and East China continue to build their own prebaked anode plants. Prebaked anode producers in Shandong and Henan face fierce challenges.
★ China witnessed alumina export in 2018 for tight global supply
The global alumina supply remained tight in 2018 and alumina prices skyrocketed. Promoted by the great price gap between Chinese domestic and global markets, China started alumina export in 2018.
★ Chinese aluminum production capacity moves to lower-cost region continuously
In 2018, Chinese aluminum ingot market remained sluggish and a number of aluminum smelters cut production from the fourth quarter for losses. With the pressure from market and strict environmental protection policy, Chinese aluminum production capacity moves to lower-cost region such as Inner Mongolia and Southwest China from mid-China.
