Malaysian bauxite prices get support by tight supply
2016-10-21 08:39:09 [Print]
BEIJING (Asian Metal) 21 Oct 16 - In October, Chinese demand for Malaysian bauxite continues to warm up, but supply in Malaysia is in shortage. Many owners do not keep export licenses. Mainstream prices for bauxite Al 40% Si 5% are firm at USD26-27/t FOB Malaysia, and some deals are even concluded at around USD28/t.
A trader from China reported that they will import around 90,000t of bauxite from Malaysia in October. “We have two vessels waiting for shipment in Kuantan now,” said the source, adding that they once planned to deliver the first shipment on this Tuesday, but the plan was delayed due to rainfall.
In addition the trader noted that their selling price for bauxite Al 40% edged up by USD1/t to USD37-38/t CIF China for the new cargo. “Although some owners offer USD33/t CIF China, they cannot provide bauxite in time,” said the source, who holds no stock for new orders.
A bauxite owner in Malaysia confirmed the short supply. “We do hold 300,000t of stocks, but have no export license, and it is very difficult to get it,” said the source, adding that the government needs to charge RM10 for each tonne of bauxite.
According to the owner, although the demand in China warms up and price is firm at around USD26/t FOB Malaysia, they are not able to export now. “In addition, the rainfall in Malaysia will become heavy next month, so supply will be tighter,” said the source.
Based on the monthly capacity of 300,000t, the owner stopped export 10 months ago, when their export price was around USD25/t FOB Malaysia.
A trader from China reported that they will import around 90,000t of bauxite from Malaysia in October. “We have two vessels waiting for shipment in Kuantan now,” said the source, adding that they once planned to deliver the first shipment on this Tuesday, but the plan was delayed due to rainfall.
In addition the trader noted that their selling price for bauxite Al 40% edged up by USD1/t to USD37-38/t CIF China for the new cargo. “Although some owners offer USD33/t CIF China, they cannot provide bauxite in time,” said the source, who holds no stock for new orders.
A bauxite owner in Malaysia confirmed the short supply. “We do hold 300,000t of stocks, but have no export license, and it is very difficult to get it,” said the source, adding that the government needs to charge RM10 for each tonne of bauxite.
According to the owner, although the demand in China warms up and price is firm at around USD26/t FOB Malaysia, they are not able to export now. “In addition, the rainfall in Malaysia will become heavy next month, so supply will be tighter,” said the source.
Based on the monthly capacity of 300,000t, the owner stopped export 10 months ago, when their export price was around USD25/t FOB Malaysia.
Bauxite Australian Monohydrate 52%min CIF China
Unit:USD/dt
China bauxite producers' sales to production ratio statistics by province by month
Unit: %
