Malaysia to clear bauxite stocks in Kuantan port
2017-12-29 08:27:16 [Print]
BEIJING (Asian Metal) 29 Dec 17 - Early this week, Malaysia declared to extend the bauxite mining ban to June 30, 2018 from late this month. However, in the following six months, bauxite suppliers in Kuantan of Malaysia can export stocks in the port after getting export approvals. Therefore, bauxite owners in Malaysia prepare to clear stocks. Because of rising Indonesian bauxite supply, the price for bauxite Al2O3 40%min SiO2 5%max may not get support at USD27-28/t FOB Malaysia.
A bauxite owner in Malaysia reported that they now keep around 100,000t of low grade bauxite Al2O3 40%min SiO2 5%max in Kuantan port. "We may get approval in early next January," said the source, adding that they will manage to export all cargo next month. Because of Indonesian bauxite supply, the owner is not sure if Chinese buyers will accept the offer of USD27/t for the low grade cargo.
According to the source, the new policy only allows exporters to sell cargo in the port, so there will be few exports. The owner suspended export in August, when they exported around 50,000t of bauxite Al2O3 46%min SiO2 5%max at around USD40/t.
Based on the annual capacity of 2 million tonnes, the owner is out of production due to the mining ban.
Another bauxite owner in Malaysia confirmed that they received the notice to clear stocks in the port. "However, we have no cargo in the port," said the source, adding that there are only around 500,000t of bauxite in total in Kuantan port.
They once exported around 50,000t of low grade bauxite Al2O3 40%min SiO2 5%max late July at around USD27.5/t FOB Malaysia.
After the Chinese Spring Festival, they plan to provide with bauxite Al2O3 48%min SiO2 8%max in Johor of Malaysia based on the monthly capacity of 180,000t.
A bauxite owner in Malaysia reported that they now keep around 100,000t of low grade bauxite Al2O3 40%min SiO2 5%max in Kuantan port. "We may get approval in early next January," said the source, adding that they will manage to export all cargo next month. Because of Indonesian bauxite supply, the owner is not sure if Chinese buyers will accept the offer of USD27/t for the low grade cargo.
According to the source, the new policy only allows exporters to sell cargo in the port, so there will be few exports. The owner suspended export in August, when they exported around 50,000t of bauxite Al2O3 46%min SiO2 5%max at around USD40/t.
Based on the annual capacity of 2 million tonnes, the owner is out of production due to the mining ban.
Another bauxite owner in Malaysia confirmed that they received the notice to clear stocks in the port. "However, we have no cargo in the port," said the source, adding that there are only around 500,000t of bauxite in total in Kuantan port.
They once exported around 50,000t of low grade bauxite Al2O3 40%min SiO2 5%max late July at around USD27.5/t FOB Malaysia.
After the Chinese Spring Festival, they plan to provide with bauxite Al2O3 48%min SiO2 8%max in Johor of Malaysia based on the monthly capacity of 180,000t.
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