Summary: The price of bauxite has been rising in the face of a slump in iron ore and coal prices. The Indonesian Government has banned the export of unprocessed ore, while there is steady demand for aluminium. One insider expects a bauxite shortage as early as 2016 when China’s stockpile is depleted. High production costs in Australia mean the amount of unprocessed ore exported is rising.
Key take-out: International pressures including the Indonesian ban and the outbreak of Ebola in West Africa are a positive development for Australian bauxite miners.
Key beneficiaries: General investors. Category: Commodities.