20 February 2025 AXSMarine
India’s aluminium sector is undergoing a notable shift with domestic producers increasingly depending on imported Bauxite to satisfy growing demand. In 2023, bauxite imports exceeded 3.7m MT, representing a 6.3% year-over-year increase. This momentum continued into 2024, with an additional 20% increase to over 4.5m MT, signalling the industry’s deepening reliance on external sources to fuel its accelerating expansion.
The majority of this demand stems from the flourishing domestic market, valued at $11.28bn in 2023 and predicted to reach $18.84bn by 2030 — a projected 7.6% compound annual growth rate. Aluminium consumption is being propelled by vital sectors such as construction, automotive, and electronics. Construction, in particular, has embraced aluminium’s lightweight yet durable characteristics, incorporating it into modern infrastructure projects.
Despite India being as the world’s second-largest aluminium producer, local Bauxite extraction has not managed to keep pace with industry requirements. Environmental regulations, complex land acquisition processes, and organized resistance from local communities have slowed domestic mining expansion. Additionally, certain Bauxite deposits in India contain higher impurity levels, raising costs and reducing efficiency when converting bauxite into alumina.
In response, Indian companies are pouring resources into large-scale alumina refining ventures that hinge on a stable bauxite supply. Hindalco Industries recently announced between $4bn and $5bn investments for expanding its aluminium and copper production capacities, while Vedanta Aluminium boosted the annual refining capacity at its Lanjigarh facility from 2m tonnes to 3.5m tonnes, with a roadmap to reach 5m. These upgrades underscore the necessity for continued - or in many cases, increased - Bauxite imports.
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