★ New looming demand for imported bauxite in China

Chinese origin bauxite supply becomes tight because of strict environmental protection policy. Alumina refineries in Henan and Shanxi also start using imported bauxite. Demand for imported bauxite will continue to rise.

★ Rising global bauxite supply and fiercer competition

Indonesia reopened bauxite export and, until November 2017, six owners have acquired export quota with a total volume of around 14.7 million tonnes. In 2018, Guinea will be expected to export around 40 million tonnes of bauxite to China, up from around 30 million tonnes in 2017. More bauxite owners in Australia will start production in 2018. Malaysia will possibly resume bauxite export in early 2018.

★ Regular environmental protection inspection in China puts forward higher requirement for production of primary aluminum and its raw materials

Supply-side Reform for primary aluminum in China pushed up the aluminum market in the middle of 2017, which failed to keep continuous because of the slow demand improvement. The environmental protection inspection in China becomes regular. Producers of alumina, prebaked carbon anode and aluminum fluoride face pressures in cutting production periodically.