Latest records suggest the supply of raw material-Bauxite in China is limited. Experts hint on a corroding supply from the past few years which has resulted in an increase in the production costs and has exhausted the capacity of the raw material in the region.
According to research sources, the proportion of bauxite is especially tight. Reasons attributed for the same are misuse of reserves. In addition, small-scale mining is also frequently high-priced and high grade. Such high-grade reserves cannot be exploited economically, experts believe, especially if they are controlled by large producers.
Moreover, reserves of non-metallurgical bauxite and alumina are facing an environmental lockdown. The trend has thus resulted in producing high prices of the materials.
Reports suggest, the Shanxi province which is a major bauxite producing region, has underwent suspension of the production, owning to various environmental controls. The intensity of the bauxite shutdowns was so grave, that for a certain period, the Shanxi province had no bauxite available for use.
Experts show concerns over the quality and quantity of bauxite reserves, in addition to doubting if these will be mined or processed, owning to the strict regulations of the environmental procedures.
Experts also warn of the futuristic situation of the global market, given that the demand for high grade raw material bauxite, alumina products and Non-Metallurgical Bauxite in China continue to increase.