Malaysian bauxite market deals quiet

BEIJING (Asian Metal) 29 Dec 15 - Due to sluggish alumina market, some Chinese refineries cut production, leading to soft demand for Malaysian bauxite. Although some concluded prices for low grade Malaysian bauxite moved down by USD3-4/t to around USD25-26/t FOB Malaysia, buyers were still inactive in purchasing new stocks.

A trader in China reported that they sold around 50,000t of Malaysian bauxite Al 46-47% Si 12%max in October at around USD47/t CIF China. “However, buyers cannot accept the price now,” said the source, adding that they hold 55,000t of stocks on hand.

According to the source, even if prices are lower, buyers still have no demand. Therefore, the trader starts watching the market.Asian Metal Copyright “As I know, prices are only around USD24-25t FOB Malaysia now,” said the source, who predicted that the price may touch bottom and owners will suffer losses at lower prices.Asian Metal Copyright “Many Chinese refineries cut production, and demand is weak,” explained the source.

A consumer in China confirmed that they did not purchase bauxite in November and December. “We still hold around 400,000t of bauxite in stock, so we have no plan to add stocks now,” said the source, adding that their monthly demand declined from 200,000t to 100,000t recently.

As the source revealed, they may not resume normal production until alumina prices move up. “We plan to purchase bauxite after rainy season in Malaysia,” said the source.

Their purchase price for bauxite Al 40%min Si 5%max was around USD29/t FOB Malaysia two months ago. “As I know, prices are only around USD24-25/t FOB Malaysia now,” said the source, who predicted that the price may touch bottom and owners will suffer losses at lower prices.
.Asian Metal Copyright “We plan to purchase bauxite after rainy season in Malaysia,” said the source.Asian Metal Copyright