Chinese alumina refineries expect for lower local bauxite prices
2017-12-06 08:46:57 [Print]
BEIJING (Asian Metal) 6 Dec 17 - In November, more bauxite producers resumed production in Henan and Shanxi, leading to stocks increase in late November, so inland alumina refineries expect for lower bauxite prices. Prices for bauxite Al/Si=5.0 dropped by around RMB40/t (USD6/t) to RMB360/t (USD54/t) delivered VAT excluded in Shanxi this week
A Shanxi-based alumina producer reported that they ordered around 200,000t of bauxite early this month and the price for bauxite Al/Si=5.0 was around RMB360/t (USD54/t), down by about RMB40/t (USD6/t) compared with that last month. "We purchased around 500,000t of the material last month," said the source, adding that the price may drop further by RMB10/t (USD2/t) next week, when they will add more stocks.
The source explained that a big number of bauxite producers in Shanxi and Henan resumed production, leading to stocks increase. In addition, alumina prices dropped from RMB3,700-3,800/t (USD559-574/t) EXW to RMB3,300-3,400/t (USD499-514/t) over the past month.
Based on the demand capacity of 500,000tpm, the refinery needs to consume around 500,000tpm now and hold stocks for demand in three months, up from around two months in late October.
Another alumina producer in Guizhou anticipated that bauxite prices in the local market may go down after the Spring Festival, as demand from Henan became weak. "We purchased around 300,000t of the material early this month, and the price for bauxite Al/Si=6.5 is around RMB265/t (USD40/t), the same with last month," said the source.
According to the source, over the past few months, bauxite consumers in Henan turned to Guizhou for bauxite resources, which pushed up prices. With demand in Henan becoming weak, the price in Guizhou may retreat gradually.
Based on the demand capacity of 300,000tpm, the refinery consumes the same volume per month now and holds stocks for demand in two and a half months.
. Prices in other provinces may follow soon.A Shanxi-based alumina producer reported that they ordered around 200,000t of bauxite early this month and the price for bauxite Al/Si=5.0 was around RMB360/t (USD54/t), down by about RMB40/t (USD6/t) compared with that last month. "We purchased around 500,000t of the material last month," said the source, adding that the price may drop further by RMB10/t (USD2/t) next week, when they will add more stocks.
The source explained that a big number of bauxite producers in Shanxi and Henan resumed production, leading to stocks increase. In addition, alumina prices dropped from RMB3,700-3,800/t (USD559-574/t) EXW to RMB3,300-3,400/t (USD499-514/t) over the past month.
Based on the demand capacity of 500,000tpm, the refinery needs to consume around 500,000tpm now and hold stocks for demand in three months, up from around two months in late October.
Another alumina producer in Guizhou anticipated that bauxite prices in the local market may go down after the Spring Festival, as demand from Henan became weak. "We purchased around 300,000t of the material early this month, and the price for bauxite Al/Si=6.5 is around RMB265/t (USD40/t), the same with last month," said the source.
According to the source, over the past few months, bauxite consumers in Henan turned to Guizhou for bauxite resources, which pushed up prices. With demand in Henan becoming weak, the price in Guizhou may retreat gradually.
Based on the demand capacity of 300,000tpm, the refinery consumes the same volume per month now and holds stocks for demand in two and a half months.