The Red Sea is the only way for Turkish bauxite exports to China, so the crisis in the region has impacted Turkish bauxite exports to China and the global trading market.
Turkish miners and downstream buyers have begun to worry about the substantial obstacles caused by the crisis. Sea freight from Turkey to China has begun to rise, although it hasn’t yet reached historical highs, and insurance costs have also increased.
The increase in shipping costs will directly affect the CIF price of Turkish bauxite, which is expected to result in higher prices of long-term agreements in 2024. Both China’s import costs and the global bauxite market price will be impacted by the increased sea freight.
To address the problem, Turkish miners and downstream buyers have to take necessary measures to manage costs and risks as appropriate, and China also needs to find more sources of bauxite imports, reduce dependence on a single country, and ensure the stability of the supply chain.
Turkey’s bauxite exports to China impacted by sea freight due to Red Sea crisis
5 Jan 2024 13:33 reported by Joy Liu
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