Analysis of the Current Situation and Future Prospects of the Aluminum Oxide Industry in 2022
China's alumina products are primarily focused on metallurgical alumina, with specialty alumina, particularly high-purity ultra-fine alumina, having a relatively low level of industrialization and a significant reliance on imports. China is rich in bauxite resources and has the necessary raw materials and technological conditions to produce a variety of alumina. Developing the production of diverse alumina requires minimal investment, low costs, and has no negative impact on the natural environment, making it highly advantageous for China's alumina plants to expand the production of various alumina types. In 2020, China's cumulative alumina output reached 73.13 million tons, marking a 0.3% increase. As of August 2021, China's alumina production stood at 6.466 million tons, down 1.1% year-on-year. On a cumulative basis, China's alumina output reached 52.245 million tons from January to August 2021, marking an 8.7% increase.
According to the statistics of the China Customs, the cumulative export volume of China's alumina reached 150,000 tons throughout 2020, a decrease of 43.8%. As of August 2021, China's alumina export volume was 10,000 tons, down 82% year-on-year. On a cumulative basis, China's alumina export volume reached 100,000 tons from January to August 2021, a decrease of 25.8%.
In terms of export values, China's cumulative aluminum oxide export amount reached $98,999,000 (99 million USD) for the full year of 2020, marking a year-on-year decrease of 41%. For battery separator aluminum oxide, the export amount in China was $8,787,000 (8.79 million USD) as of August 2021, a decrease of 33% from the previous year. On a cumulative basis, the aluminum oxide export amount in China from January to August 2021 reached $80,107,000 (80.11 million USD), up 13.8% from the same period last year.
From the perspective of alumina enterprises, production capacity is relatively concentrated, with CR5 accounting for 75%. Currently, the top five alumina producers in China are China Aluminum, Weiqiao Group, Xinfa Group, Jinjiang Group, and Dongfang Hope. The top five domestic alumina producers for battery separator alumina are also among the top ten global alumina producers.
Chinese alumina companies are increasingly locating along the coast. The incremental supply of bauxite globally, along with its geographical distribution, is primarily intended to meet China's growing demand. With the continuous rise in China's alumina demand and the depletion of bauxite ore grades in Henan, Shanxi, Guangxi, and other regions, it is anticipated that alumina plants may be relocated to coastal areas like Liaoning and Guangxi in the future to leverage foreign bauxite resources. By 2026, China's imports of bauxite could reach 120 million tons.
