Calcined Bauxite Supply is Meeting Change in 2019
In 2018, mine ban aiming at raw bauxite were implemented after about half a month of free production after heating season, which still works until now with no clear data to recover. Bauxite supply shortage seems to have become a long term problem to abrasive and refractory industry with too many companies under production stoppage. Even though the winter capacity restriction will be removed after heating season, moreover, there is still uncertainties about the government’s environmental protection policy.
It’s believed that local government is expected to release a new and more detailed environmental protection action plan with more clear goals in the first half of 2019 to guide more companies to meet environmental protection standards. However, there is another view that the government is trying to integrate the industry to make it a higher effective and lower emission industry, so some extensive developing participants are definitely swept out.
It’s not sure whether it will be new round of environmental protection action or it will meet a looser policy environment after the end of this winter, or the industry will get rid of the current difficluty in coming year, but it's sure to be a key year for the industry in 2019.