Chinese companies will face challenges in importing a key raw material for the electrolytic aluminum industry when the Indonesian government introduces new export policies, experts said.
Wan Ling, manager of China nonferrous metals at commodity data firm CRU International Ltd, said on Tuesday that it will be difficult for Chinese companies that do not have plans to build plants in Indonesia to get bauxite imports.
China this year imported about 53.5 million metric tons of bauxite, a key raw material for electrolytic aluminum, an annual increase of 76.4 percent, according to Chinese customs data.
About 67 percent of the bauxite imported was from Indonesia, with imports from that country up 60 percent in the first three quarters.
The soaring imports reflected moves by producers in China ahead of a policy change in Indonesia, where the government is expected to announce limits on its bauxite exports in January.
"China's electrolytic aluminum industry depends heavily on imports of bauxite for downstream production, which leads to increasing overseas investment in the mining sectors," said Wan.
