Malaysian bauxite price lacks momentum to climb up in June
2015-06-10 09:05:30 [Print]
BEIJING (Asian Metal) 10 Jun 15 - Although Malaysian bauxite supply will slide down in June because of strict policy control on bauxite transportation, bauxite prices remain stable. Prices for low grade bauxite Al 40-41% Si 5%max continue to be steady at USD29-30/t FOB Malaysia and suppliers cannot raise offers now because of sufficient bauxite stocks in China and a small number of buyers.
A Malaysian bauxite owner reported that they exported around 180,000-200,000t of bauxite in May, and the volume will be stable in June. “We have permits, so the export volume is not influenced,” said the source, adding that their concluded prices for bauxite Al 40-41% Si 5%max remained at USD30/t FOB Malaysia, unchanged compared with that in last month.
According to the source, many owners without required permits have been forced to halt production, so the overall bauxite supply will move down in June. However, mainstream bauxite prices do not move up, as stocks in China remain sufficient.
The owner predicted that bauxite prices may edge up two months later, when Chinese stocks declined obviously. “Not all Chinese consumers hold enough stocks,” said the source.
Another bauxite owner in Malaysia confirmed that prices for bauxite Al 40-41% Si 5%max remained stable at around USD29-30/t FOB Malaysia in June. “We may export around 300,000t of bauxite this month, the same with that in last month,” said the source, who owns permits and their export volume is not influenced by the strict control policy.
The owner stated that bauxite supply in Guantan Port becomes less, but it is difficult for prices to move up, as Chinese consumers hold sufficient stocks. “Meanwhile, many bauxite owners in Malaysia start bauxite development in Johor because of the strict policy control in Guantan,” said the source.
The source anticipated that their bauxite export volume may decline in late this year. On the one hand, it will be rainy season; and on the other hand, it will become difficult for them to buy bauxite from those illegal mining companies because of the strict policy control.
A Malaysian bauxite owner reported that they exported around 180,000-200,000t of bauxite in May, and the volume will be stable in June. “We have permits, so the export volume is not influenced,” said the source, adding that their concluded prices for bauxite Al 40-41% Si 5%max remained at USD30/t FOB Malaysia, unchanged compared with that in last month.
According to the source, many owners without required permits have been forced to halt production, so the overall bauxite supply will move down in June. However, mainstream bauxite prices do not move up, as stocks in China remain sufficient.
The owner predicted that bauxite prices may edge up two months later, when Chinese stocks declined obviously. “Not all Chinese consumers hold enough stocks,” said the source.
Another bauxite owner in Malaysia confirmed that prices for bauxite Al 40-41% Si 5%max remained stable at around USD29-30/t FOB Malaysia in June. “We may export around 300,000t of bauxite this month, the same with that in last month,” said the source, who owns permits and their export volume is not influenced by the strict control policy.
The owner stated that bauxite supply in Guantan Port becomes less, but it is difficult for prices to move up, as Chinese consumers hold sufficient stocks. “Meanwhile, many bauxite owners in Malaysia start bauxite development in Johor because of the strict policy control in Guantan,” said the source.
The source anticipated that their bauxite export volume may decline in late this year. On the one hand, it will be rainy season; and on the other hand, it will become difficult for them to buy bauxite from those illegal mining companies because of the strict policy control.
Bauxite Australian Monohydrate 52%min CIF China
Unit:USD/dt
China bauxite producers' sales to production ratio statistics by province by month
Unit: %
