Chinese alumina refineries face difficulty in consuming low grade Malaysian bauxite
2014-11-25 09:08:33 [Print]
BEIJING (Asian Metal) 25 Nov 14 - Although Chinese bauxite imports from Malaysia have been increasing in recent months, Chinese alumina refineries face difficulty in consuming low grade bauxite for production. Due to the low quality, Chinese refineries need to mix with other kinds of bauxite in alumina production.
A source from a Chinese alumina refinery noted that they now mainly consume Indonesian bauxite. “We hold enough stocks for consumption in 2-3 months,” said the source, adding that they consume around 80,000t of bauxite per month.
According to the source, they have no intention to buy Malaysian bauxite, as the quality is low and unit consumption is high. “We have to mix with other kinds of bauxite in production, and the low grade Malaysian bauxite does not fit us; it is too sticky,” said the source.
In addition, the source said they would like to use Chinese origin bauxite in the future and the price for bauxite Al/Si=6% is around RMB360/t (USD59/t) d.d.p and the unit consumption is around 1.75t.
Another source from a Chinese alumina refinery confirmed that low grade Malaysian bauxite is not very suitable for alumina production in the long run. “We plan to mix with Brazilian bauxite,” said the source, adding that they suspended Malaysian bauxite imports this month because of the rainy season. They imported around 200,000t of Malaysian bauxite last month.
The source pointed out that the price for Malaysian bauxite Al 42-43% Si 5%max is around USD35/t FOB Malaysia. In spite of the low grade for Malaysian bauxite, the source disclosed that the imports from Malaysia would continue to climb up because of the limited supply from other origins.
A source from a Chinese alumina refinery noted that they now mainly consume Indonesian bauxite. “We hold enough stocks for consumption in 2-3 months,” said the source, adding that they consume around 80,000t of bauxite per month.
According to the source, they have no intention to buy Malaysian bauxite, as the quality is low and unit consumption is high. “We have to mix with other kinds of bauxite in production, and the low grade Malaysian bauxite does not fit us; it is too sticky,” said the source.
In addition, the source said they would like to use Chinese origin bauxite in the future and the price for bauxite Al/Si=6% is around RMB360/t (USD59/t) d.d.p and the unit consumption is around 1.75t.
Another source from a Chinese alumina refinery confirmed that low grade Malaysian bauxite is not very suitable for alumina production in the long run. “We plan to mix with Brazilian bauxite,” said the source, adding that they suspended Malaysian bauxite imports this month because of the rainy season. They imported around 200,000t of Malaysian bauxite last month.
The source pointed out that the price for Malaysian bauxite Al 42-43% Si 5%max is around USD35/t FOB Malaysia. In spite of the low grade for Malaysian bauxite, the source disclosed that the imports from Malaysia would continue to climb up because of the limited supply from other origins.
Caustic Soda 32%min Delivered China
Unit:RMB/mt 100-basis
China alumina producers' output statistics by province by month
Unit: mt
