Market Review On China Bauxite Supply In December

- Jan 09, 2019-

Market review on China bauxite supply in December

By the end of 2018, this situation still keeps going forward both in northern and southern China. In Shanxi and Henan province, capacity constriction during heating season and production stoppage by extremely air pollution appear to be a stronger implementation than the previous winter. Production stoppage is under more serious inspection and implementation by local governments in these two provinces.


In Xiaoyi, where round kiln has been outlawed, market price of rotary kiln based calcined bauxite keeps going upward against the stoppage status to majority of kilns. It’s reported that only about 20 plants is authorized to operate but also impacted by emergent air pollution alert. The overall capacity usage for the industry is estimated to be around 15%~20%.  


Online inspection system for industrial emission has started to run in Jiexiu, another production center for calcined bauxite, by which real-time emission status will be monitored in future. Local round kiln facilities are expected to invest more to keep the emission meeting enrionmental protection standards.


In Guizhou province, all beat-up shaft kilns have been removed before the winter starts and none of new capacity has been authorized to join in, only leaving several rotary based facilities in production under environmental protection inspection, supporting the supply with difficulty.    


Chinese calcined bauxite industry is facing the unprecedented supply risk, from which even the most powerfull producers can’t escape.


Revised “Regulations on the prevention and control of air pollution in Shanxi Province” was issued on 7th, December 2018, which is stated to be put into effectives on 1st, January 2019. The regulation that is revised for the first time over the past 20 years is expected to bring the environmental protection to a new stage, by which targets will be more clear and implementation will be more of legistlation. In the regulation, it is for the first time that the provincal government is empowered to enact environmental protection standards or regualtions higher than the national standards. In Henan province, the similar regulation is also in making, by which environmental standards, emission standards, standards inspection system and standards for mining will be clarified by law.


It’s clear that environmental protection action will continue with more clear standards and more legislation in 2019, and it also means more investment will be put by companies to meet more rigorous law and higer standards.