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Indonesian export ban on bauxite impacts little on aluminum industry
The Indonesian Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said on Monday (September 9th) that Indonesia was studying to accelerate the export ban on bauxite. However, it was thought that the policy will have little impact on aluminum industry.

Indonesia had banned the bauxite exports in 2014 and resumed exporting in 2017. During the period of the export ban, the bauxite supply from Indonesia has gradually been replaced by Australia and Guinea, and the impact on prices will also weaken.

Also, Indonesia has already dropped to the third-largest bauxite importer for China since the proportion of bauxite imports from Guinea has been increasing year by year, showing that the Chinese dependence on Indonesian bauxite imports has declined significantly.

Moreover, the high inventory was also the reason for the little effect on aluminum industries by Indonesian bauxite export ban, and other countries could even fill the supply gap for a long time, such as the sources from Australia and Guinea.
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