Fitch Solutions Macro Research published a study looking at the global bauxite market. The report states that bauxite production growth will remain high over the coming years as India’s production ramps up. Moreover, new projects that come online in Australia, Indonesia expanding exports etc will also play a part in the production growth.
Although, the other parts of the world will face growth in terms of exports, India will grow in the domestic market by pushing for increased bauxite production. It is expected to grow from 30.9mnt in 2018 to 50.7mnt by 2027. The hike is supported by new government policy, such as the decision of the Odisha state cabinet to approve long-term bauxite linkage policy.
The output is forecasted to increase because of another reason – 71 major mineral blocks will be auctioned by the Indian government in coming years. Among these, bauxite accounts for three blocks in Gujarat, one block in Jharkhand, and four blocks in Maharashtra.