Indonesia bauxite export ban forces alumina producers in Shandong to control production
2012-05-18 09:17:07 [Print]
BEIJING (Asian Metal) 18 May 12 – After Indonesia issued the export ban policy, part alumina producers in Shandong province reduced production. The Indonesian bauxite import in Shandong province accounts for nearly 90% of the total import each year. Therefore, the export ban will influence alumina production in Shandong.
A Shandong-based alumina producer reported that they took equipment maintenance for two production lines half a month ago. “The alumina production is around 13,000t each day at present,” said the source.
Based on the capacity of 6 million tons per year, the plant once produced around 500,000tpm, but the output may decline to 400,000t in May.
In addition, the source revealed that they offer RMB2,700/t (USD429/t) ex works for alumina at least. “The production cost may rise by RMB100/t (USD16/t) as Indonesia will impose 20% export tax on bauxite export,” said the source, noting that the alumina price may go up in the coming two months.
Another producer from Shandong confirmed that they reduced production by around 10,000tpm to 160,000tpm. “The current alumina price of RMB2,700/t is below cost level,” said the source, noting that the Indonesia bauxite export ban may not push up alumina market quickly.
The source explained that alumina price went up slightly in the past month due to Indonesian policy, so it is hard for the price to increase further this month. In addition, aluminum ingot price dropped obviously from early this week, which weighed on alumina market. Thirdly, the Australian origin alumina price is only at RMB2,680/t (USD425/t), so Chinese origin alumina price may not rise quickly.
Asian Metal learnt that alumina producers in Shandong province hold bauxite stocks enough for around 3-6 months consumption. They are now searching for new sources and also take the chance to control production.
A Shandong-based alumina producer reported that they took equipment maintenance for two production lines half a month ago. “The alumina production is around 13,000t each day at present,” said the source.
Based on the capacity of 6 million tons per year, the plant once produced around 500,000tpm, but the output may decline to 400,000t in May.
In addition, the source revealed that they offer RMB2,700/t (USD429/t) ex works for alumina at least. “The production cost may rise by RMB100/t (USD16/t) as Indonesia will impose 20% export tax on bauxite export,” said the source, noting that the alumina price may go up in the coming two months.
Another producer from Shandong confirmed that they reduced production by around 10,000tpm to 160,000tpm. “The current alumina price of RMB2,700/t is below cost level,” said the source, noting that the Indonesia bauxite export ban may not push up alumina market quickly.
The source explained that alumina price went up slightly in the past month due to Indonesian policy, so it is hard for the price to increase further this month. In addition, aluminum ingot price dropped obviously from early this week, which weighed on alumina market. Thirdly, the Australian origin alumina price is only at RMB2,680/t (USD425/t), so Chinese origin alumina price may not rise quickly.
Asian Metal learnt that alumina producers in Shandong province hold bauxite stocks enough for around 3-6 months consumption. They are now searching for new sources and also take the chance to control production.
Caustic Soda 32%min Delivered China
Unit:RMB/mt 100-basis
China alumina producers' number MoM output increase statistics by province by month
Unit: pcs
