COVID-19 brings uncertainties to global bauxite supply
----Interview with Wang Tao
General Manager
Shandong Sunland International Trade Co., Ltd.
- Shandong Sunland International Trade Co., Ltd started the involvement of bauxite mining investment and sales as well as alumina trade since 2016. We focus on high quality bauxite mining and imports, providing one-stop bauxite and alumina supply-chain service.
- Asian Metal: Thanks for joining the interview, Mr. Wang. When did your company start importing bauxite? Would you please give a brief introduction?
- Mr. Wang: We started the involvement of bauxite mining investment and sales, as well as alumina sales from 2016. We provide high quality bauxite from Southeast Asia and Guinea to meet Chinese demand and ensure stable business development.
- Asian Metal: Do you have other cargo sales?
- Mr. Wang: As a big active trader, we are striving for bauxite and alumina one-stop supply-chain service.
- Asian Metal: How many tons of bauxite did you import in 2019 and what is your target for 2020?
- Mr. Wang: In my view, the Chinese demand for imported bauxite would continue to increase this year. We imported around 2 million tons in 2019 and target around 3.5 million tons in 2020. As a reliable supplier, everybody in our company is working closely for the target.
- Asian Metal: Which origin will your bauxite come from this year? Would you please have a short introduction?
- Mr. Wang: Focusing on bauxite from Guinea, Indonesia and Malaysia, we have direct investment with local miners, including joint exploration and mining, quality management and marketing, etc. We play an important role in the market by mining investment together with trade business, providing one-stop service for alumina refineries, aluminum smelters as well as refractory producers.
- Asian Metal: From Q1 this year, prices for bauxite from Guinea and Indonesia went down due to the crude oil prices slump and freight decrease. Will that push more Chinese buyers to buy imported bauxite? How do you think of the Chinese demand in the coming two years?
- Mr. Wang: Many inland alumina refineries in China already turned to imported bauxite from last year. In my opinion, those refineries who are equipment with local mines will not consider using imported bauxite in a short time. Besides, it will cost for them to take technical change. The demand for imported bauxite will depend on alumina and aluminum markets.
- Asian Metal: Alumina prices went down from late March for the sluggish demand. Will the imported bauxite price go down further? What is your opinion?
- Mr. Wang: I think the price will depend on the crude oil prices, which decides the shipping freight. The demand from alumina refineries will affect the import volumes but not prices.
- Asian Metal: COVID-19 brings big challenges for China and the global aluminum industry. Do you think COVID-19 will affect bauxite supply and demand?
- Mr. Wang: The pandemic will bring uncertainties on bauxite shipment delivery, as many countries like Indonesia issued isolation policies on vessels and lockdowns in some cities. However, the bauxite production in Indonesia remains normal now. Prices for Indonesian bauxite slipped to USD44-46/t CIF China for the freight decrease, but prices might rebound if bauxite production is affected in the future.
- Asian Metal: According to the current policy, Indonesia will stop bauxite export in January, 2022. What measures will you take before the deadline? How do you think of the chances and challenges in the coming three years?
- Mr. Wang: In my opinion, Indonesia will stop nickel ore export but not for bauxite, as there are not many alumina refineries now. We are also seeking more bauxite resources from other countries, not relying on Indonesia in the long term.
- Asian Metal: Ms. Jiaxin Wang, a doctor and your elderly sister, joined the war against COVID-19 in Hubei early this year. Would you please share your feelings?
- Mr. Wang: To be honest, we had worries, as she is more than 40 years old, unlike other young volunteers. However, we supported her and respected the volunteer choice. We did not tell my father and mother the information. My elderly sister registered on January 26 (the day after Chinese New Year) and departed on the morning of January 28. She is the only one from Zouping, a small city in China.
- Actually, everyone of us made great sacrifice in the war.
- Asian Metal: Yes, especially for doctors and nurses. Does your company have any donations?
- Mr. Wang: Yes, we donated face masks to Hubei and our clients from other countries like Malaysia and Indonesia.
- Asian Metal: Many thanks again. Good wishes to your family and your company!
- Mr. Wang: Thanks very much!
