RI?s bauxite supply pressure to push costs of China?s alumina
Thursday, August 16 2012 - 03:57 AM WIB
Indonesian government?s policy of imposing a 20 percent export duty on bauxite would further push the Chinese alumina production costs up since between 75 to 80 percents of China?s seaborne bauxite are from Indonesia.
The presentation by ASX-listed Alumina Limited quoting report of CM Group said that China imports of Indonesian bauxite were down 93 percent in June 2012 due to Indonesian ban policy. China imported about 6 million tons of bauxite in May from Indonesia.
?Rising bauxite costs could create further ?cost push? on Chinese alumina production and pricing,? the presentation says.
About 34 percent of China?s 2011 alumina production relied on imported bauxite.
Editing by Adianto P. Simamora