Global Times reported that resource security has long been creating a bottleneck restricting the development of China's aluminum industry. According to figures from the China Nonferrous Metals Industry Association, China's bauxite ore imports were on the rise during the 11th Five-Year Plan period (2006-10). Imports reached 30.36 million tons in 2010, up 53.3 percent year-on-year, indicating a 45.18 percent dependence on foreign bauxite ore.
For years, China has been making efforts to lower its dependence on bauxite ore imports. But the country's own limited bauxite reserves place it in a precarious position.
Less than 3 percent of the world's bauxite ore reserves are located in China, yet the country is home to nearly 40 percent of the earth's total alumina production capacity. And with Indonesia and Australia now supplying more than 90 percent of China's bauxite ore imports, this makes China highly vulnerable to policy changes in these two countries.
China should increase its usage of recycled aluminum and develop more international cooperations to diversify its sources of bauxite ore.
BAU Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
