Global Alumina and Electrolytic Aluminum Industry, 2012-2013

China's bauxite features poor quality and low self-sufficiency rate of high-quality bauxite. With the gradual release of new alumina capacity and expansion of downstream smelting capacity in China, China has rapidly increased the import of bauxite. China's imports of bauxite mainly come from Indonesia, Australia and India, among which, Indonesia accounts for more than 70%. As the electricity cost in western region is lower than that in the eastern region of China, the electrolytic aluminum capacity of the western region has continued to expand, but in the meantime, the high energy-consuming and high-cost electrolytic aluminum capacity of the eastern region hasn't been reduced in large scale, leading to serious overcapacity in China's electrolytic aluminum industry in 2012. The rising bauxite and power costs as well as the sluggish LME prices have led to large-scale losses in the aluminum industry. In order to cope with the dual pressure from rising costs

Original Post Global and China Alumina and Electrolytic Aluminum Industry Report, 2012-2013