Bauxite Market 2020 and Forecast 2021-2027

  • TBI396544
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research

Report Overview: Bauxite Market

The global bauxite market size was valued at USD 8.89 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 3.3% from 2021 to 2027. The growth of the market is largely attributed to the growing demand for aluminum from various end-use sectors, including construction, automotive, packaging, and electrical and electronics. Bauxite is primarily used as a raw material for alumina production, which is further used as a feedstock for producing aluminum, and therefore the market is primarily driven by aluminum production around the globe. The industry is undergoing significant transformational change, driven by strong demand from China. China lead the global bauxite industry with a massive revenue share of 58.0% in 2019. As per the statistics provided by the International Aluminum Institute, China was the largest producer of primary aluminum and produced roughly 58% of it in 2019. Therefore, China was the largest market as of 2019 and is predicted to remain so over the forecast period 2021-2027. 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 2019. 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.

Product Insights: Bauxite Market

Metallurgical grade lead the market for bauxite and captured a revenue share of 85.5% in 2019. 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.

Application insights

Alumina production lead the bauxite market with a volume share of 91.0% in 2019. Bauxite is a primary source for alumina production owing to its high alumina content, which is further processed to manufacture finished products. Increasing demand for finished products from the end-use industries, such as automotive and construction, is likely to fuel segment growth. The refractory application segment is bearing the brunt of shrinking demand for refractories. Refractories are largely used for steel making. In fact, the iron and steel industry consumes around 70% of the global refractories market. However, the specific consumption of refractories per ton of steel is decreasing. Additionally, the overall slowdown in global steel output is a major factor for the relatively slower growth of the refractory application segment. Bauxite residue is used as an additive in the manufacturing of Portland cement clinkers. According to the IAI, aluminum and iron constituents of bauxite provide valuable additions in the manufacturing of Portland cement at a low cost. China, India, Ukraine, Russia, Moldova, Georgia, and Greece are the major countries that currently utilize bauxite in their respective cement sectors.

Regional Insights: Bauxite Market

Asia Pacific held the largest market share of 68.0% in 2019, in terms of volume. This can be attributed to the presence of primary aluminum-producing countries in Asia Pacific, such as China, Australia, and India. As per the IAI statistics, about 67.5% of global primary aluminum in 2019 was produced in Asia Pacific. Demand in China until 2018 was largely met by its domestic reserves until 2018.  However, the supply has been tightened and heavily regulated in the Shanxi province since 2018, which constitutes majority of the country’s product reserves. The Shanxi government has clamped down on illegal mining across the province, which has tightened domestic production. As a result, bauxite currently is majorly sourced from Guinea and Australia. Canada is a major producer of primary aluminum in North America and constitutes majority of the bauxite demand in the region. Until the COVID-19 pandemic in 2020, the market in North America witnessed moderate growth, however, U.S. is likely to emerge as the worst-hit nation by COVID-19 in the globe. Slowdown in construction projects and pressure on working capital due to inventory buildup are some of the key challenges faced by the market players of the country. Demand for bauxite in European countries is mainly met by imports from China, Guinea, and India. Europe has a limited presence in the upstream aluminum sector as few countries, such as Russia and Norway, are the large-scale producers of primary aluminum in the region. Rising tensions with China owing to the origin of the COVID-19 pandemic and rising protectionist policies are expected to encourage domestic production of primary aluminum and spur bauxite demand in the long term.

Key Companies & Market Share Insights: Bauxite Market

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:

Key companies Profiled: Bauxite Market Report

  • Alcoa Corporation
  • Rio Tinto
  • Rusal
  • Norsk Hydro ASA
  • NALCO India
  • Hindalco
  • Ma’adeen
  • South32
This report forecasts revenue and volume growth at the global, country, and regional levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global bauxite market report on the basis of product, application, and region:

Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Metallurgical Grade
  • Refractory Grade

Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Alumina Production
  • Refractory
  • Cement
  • Others

Table of Contents 
Chapter 1 Methodology and Scope
   1.1 Market segmentation & scope
   1.2 Market definition, research scope, and assumptions
   1.3 List of data sources
   1.4 Information procurement
   1.5 Information analysis
   1.6 Market formulation & data visualization
   1.7 Data validation & publishingChapter 2 Executive Summary
   2.1 Market outlook
   2.2 Market snapshot
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