Bauxite market COVID-19 Impact, Trends & Business Statistics By 2027Posted by Mrudula Anil Karmarkar on May 3rd, 2021 The global bauxite market size is projected to reach USD 12.88 billion by 2027, expanding at a CAGR of 3.3% from 2020 to 2027, according to a new report by Grand View Research, Inc. Continuous growth in the production of primary aluminum is expected to remain a key factor in driving the market over the coming years. Bauxite is the key raw material used for the production of primary aluminum. As per the statistics released by the International Aluminum Institute, in 2018, the primary aluminum production increased from nearly 54,647 kilotons in 2014 to approximately 64,336 kilotons in 2018. This caused a subsequent increase in the demand for the product over the respective period. The market is undergoing significant transformational change, driven by strong demand for aluminum. Until 2013, China targeted Malaysia and Indonesia for its bauxite supply, however both countries imposed bans or restrictions owing to poor mining practices in 2014. Since 2014, China has been sourcing its bauxite supply largely from Guinea and to some extent form Australia. As per statistics from the United States Geological Survey (USGS), in 2020, global bauxite resources are estimated to be around 55 to 75 billion tons. Africa (mainly Guinea) and Oceania (mainly Australia) accounts for more than 50% of the global resources. Major bauxite consuming countries such as China, Russia, and India source their products mainly from Australia and Guinea. The lockdowns imposed by many countries across the globe owing to COVID-19 pandemic have stalled construction activities and caused a severe decline in terms of downstream demand for aluminum. However, major smelters and bauxite miners were largely unaffected, which has pushed inventory levels to a new high, putting additional pressure on product prices along the entire value chain. Among the leading players operating in the market, Alcoa Corporation holds the largest market share. The company has a wide portfolio comprising joint ventures, subsidiaries, and affiliated companies in the industry. The company has carried out many strategic investments over the years to capture the largest portfolio of mined bauxite around the globe. Bauxite Market Report Highlights
The market space in China is projected to witness strong competition over the coming years. The market players are targeting their business strategies to penetrate China’s large aluminum manufacturing sector. China’s tightened bauxite supply owing to stricter mining is expected to drive a huge influx of bauxite imports in the country over the coming years. The supply of bauxite has been largely unaffected by the COVID-19 pandemic in 2020. Major supplier countries such as Guinea, Australia, and Brazil are yet to announce the closure of their mines, whereas mines in China have restored their operations to nearly pre-crisis levels. However, weak demand conditions for aluminum from the downstream sectors, such as automotive and transportation and building and construction, are likely to push the market to a very high surplus. Metallurgical grade dominated the market for bauxite and captured a revenue share of 85.5% in 2020. This can be attributed to the large-scale production of primary aluminum across Asia Pacific. Thus, there is a rising demand for the product from Asia Pacific, which is likely to boost the growth of the metallurgical grade bauxite in the long term. Refractory grade is likely to witness sluggish growth over the forecast period due to overall slowdown in refractories production. The refractory grade bauxite is mainly found in China and its demand is mainly driven by domestic refractory producers of the country. However, other countries like Brazil have also started introducing refractory grade bauxite to refractory manufacturers since the past few years. Have a Query? Ask Our Expert: https://www.grandviewresearch.com/inquiry/450544/ibb The global market has been characterized by high competition with the presence of large-scale multinational players. The aforementioned vendors have integrated operations starting from bauxite mining to alumina refining and subsequently have primary aluminum production facilities. However, apart from the fully integrated participants, the market also comprises vendors who are solely focused on bauxite mining. Some of the prominent players in the bauxite market include:
Grand View Research has segmented the global bauxite market on the basis of product, application: Bauxite Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Bauxite Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare. For More Information:www.grandviewresearch.com Like it? Share it! More by this author |