Even as Chinese Aluminum Production Slows Down, Other Emerging Markets Step Up to Sustain Growth in the Bauxite and Alumina Market

Increasing production of primary aluminum in India, the Middle East, and Southeast Asia, as well as increasing use in non-metallurgical applications are poised to drive global Bauxite consumption to exceed 327 million metric tons by 2024, and Alumina consumption to reach 164 million metric tons by 2024.

Bauxite is a naturally occurring heterogeneous material mainly composed of aluminum hydroxide minerals. Bauxite ore is the most important mineral used to produce alumina, the raw material from which aluminum is produced. Bauxite’s other major uses are in abrasives, refractories, aluminous cements, chemicals and proppants. Alumina is a silvery-white colored ductile metal, possessing excellent thermal and conductive characteristics. While much of the alumina is utilized in the production of primary aluminum, non-metallurgical grade alumina is used in refractories.

The world Bauxite and Alumina market is growing at a steady rate at the behest of growing aluminum demand, and hence production, worldwide. China is the largest producer and consumer of primary aluminum worldwide, accounting for more than half of global share in both production and consumption. However, the current rate of growth pales in comparison with the heady double digit growth witnessed in the previous decade, driven primarily by the rapid expansion of alumina refining and aluminum smelting in China. However, slowdown in Chinese growth has slowed down growth of the overall market. New demand and capacity for both alumina and aluminum from India and the Middle East is driving growth in the global market. The Middle East, especially the GCC countries have witnessed rapid growth in aluminum production in the recent past, driven by Saudi Arabia and the UAE. Consequently, Alumina refining capacity is also increasing in the region to reduce import dependency, with Bauxite sourced from mineral rich African nations.

Production of bauxite and alumina is highly concentrated in a few countries. The top five countries, account for about 87% of global bauxite production, with the top ten countries accounting for about 96%. On the other hand China, Australia, Brazil, India, and Russia together account for about 85% of global production of alumina. A major part of alumina output in Australia and Latin America is utilized in metallurgical applications, while there has been a significant increase in non-metallurgical applications of alumina in recent times in Europe, and North America. Japan, which ceased to produce primary aluminum in 2014, presently produces small quantities of non-metallurgical grade alumina. The wide discrepancies in the production and consumption of both bauxite and alumina have resulted in a large international trade. Traditional bauxite mining hubs such as Australia and Brazil export both bauxite, as well as alumina. In addition, the concentration of bauxite reserves in select countries is leading to aluminum producers increasingly becoming vertically integrated by acquiring mining assets across the world to ensure stable supply of the raw material.

As stated by the new market research report on Bauxite and Alumina, China represents the largest market for both Bauxite as well as Alumina. However, Asia-Pacific region (excluding China) is forecast to witness the fastest growth among all regions for Alumina, with a CAGR of 8.1% over the analysis period, primarily driven by India. Rest of World, driven by large increase in alumina capacity in GCC countries, is forecast to witness the fastest growth among all regions for Alumina, with a CAGR of 7.9% over the analysis period. By product, Metallurgical Bauxite and Metallurgical Alumina dominate consumption, while Non-Metallurgical Bauxite and Non-Metallurgical Alumina are forecast to witness the fastest growth over the analysis period.

Major players in the market include Alcoa Corporation, Alumar, Alumina Limited, Aluminum Corporation of China Limited, CVG Bauxilum, Hindalco Industries Limited, National Aluminum Company Ltd., Norsk Hydro ASA, Rio Tinto Alcan, Inc., South32 Limited, and United Company RUSAL among others.

The research report titled "Bauxite and Alumina: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, and strategic industry activities various players. The report provides market estimates and projections in Thousand Metric Tons for Bauxite and Alumina for all major geographic markets including the US, Canada, Europe (France, Germany, Spain, Russia, and Rest of Europe), China, Asia-Pacific (Australia, India, and Rest of Asia-Pacific), Latin America (Brazil, and Rest of Latin America), and Rest of World. Product segments analyzed for Bauxite include Metallurgical Bauxite, and Non-Metallurgical Bauxite. Product segments analyzed for Alumina include Metallurgical Alumina, and Non-Metallurgical Alumina.

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