Malaysian bauxite supply prevents Indian bauxite prices from moving up further
2014-10-24 09:43:27 [Print]
BEIJING (Asian Metal) 24 Oct 14 - After the export tax rise of 10%, Indian bauxite prices rose by USD1-2/t, but the price will not go up further because of the low Malaysian bauxite prices. After the price increase, Indian bauxite suppliers complained about hard deals. According to latest data from China Customs, Chinese bauxite imports from Malaysia climbed up by 104% MOM to around 566,000t in September.
An Indian bauxite supplier speaking with Asian Metal noted that it was very difficult for new deals as Chinese buyers refused the high price. “We have talked to major Chinese buyers and offered USD62/t CIF China for bauxite Al 46-48% Si 4%max without much profits left due to the export tax, but Chinese buyers refused to accept it, because they can purchase Malaysian bauxite at low prices,” complained the source.
According to the supplier, the price for low grade Malaysian bauxite is only USD35/t FOB Malaysia, much lower than Indian bauxite prices.
The source holds around 55,000t of Indian bauxite in stock and is trying to find some buyers. “We will not increase offers next month in spite of low profits,” said the source.
A trader dealing with Indian bauxite confirmed that the price for bauxite Al 43-44% Si 6% climbed up by about USD1/t to about USD40/t FOB India due to the export tax adjustment. “The price is around USD54-55/t CIF China, basically unchanged because of the low freight charge,” said the source, who will have around 80,000t of the material arrived in China this month.
However, the trader pointed out clearly that Chinese consumers would not accept any price increase. “They will not agree with new deals, if the price goes up,” said the source, explaining that Chinese consumers can purchase Malaysian bauxite at low prices.
Given the potential market for Malaysian bauxite, the trader also considered dealing with the new material.
An Indian bauxite supplier speaking with Asian Metal noted that it was very difficult for new deals as Chinese buyers refused the high price. “We have talked to major Chinese buyers and offered USD62/t CIF China for bauxite Al 46-48% Si 4%max without much profits left due to the export tax, but Chinese buyers refused to accept it, because they can purchase Malaysian bauxite at low prices,” complained the source.
According to the supplier, the price for low grade Malaysian bauxite is only USD35/t FOB Malaysia, much lower than Indian bauxite prices.
The source holds around 55,000t of Indian bauxite in stock and is trying to find some buyers. “We will not increase offers next month in spite of low profits,” said the source.
A trader dealing with Indian bauxite confirmed that the price for bauxite Al 43-44% Si 6% climbed up by about USD1/t to about USD40/t FOB India due to the export tax adjustment. “The price is around USD54-55/t CIF China, basically unchanged because of the low freight charge,” said the source, who will have around 80,000t of the material arrived in China this month.
However, the trader pointed out clearly that Chinese consumers would not accept any price increase. “They will not agree with new deals, if the price goes up,” said the source, explaining that Chinese consumers can purchase Malaysian bauxite at low prices.
Given the potential market for Malaysian bauxite, the trader also considered dealing with the new material.
Bauxite Guinean 45%min CIF China
Unit:USD/dt
China bauxite producers' inventory statistics by province by month
Unit: mt
