Weak demand from China weighs on Malaysian bauxite prices
2015-09-25 09:23:54 [Print]
BEIJING (Asian Metal) 25 Sep 15 - Prices for low grade Malaysian bauxite Al 40%min Si 5%max remained steady at around USD29-30/t FOB Malaysia in August. Malaysian bauxite supply remains sufficient, but some Chinese consumers have cut purchase volume in recent two months due to sluggish alumina market. Low grade Malaysian bauxite prices may move down by USD0.5-1/t in October.
A Chinese alumina producer, who purchased around 200,000t of Malaysian bauxite per month in H1 2015, reported that they may only buy around 100,000t of the material in September. “The price for bauxite Al 40%min Si 4%max is around USD30/t FOB Malaysia,” said the source, anticipating that the price may retreat due to the weak demand.
According to the source, Chinese alumina market is sluggish and some alumina producers may cut production in the short term due to losses. In addition, most consumers hold sufficient bauxite stocks, stated the source.
They consume around 500,000-600,000t of bauxite per month and hold stocks enough for consumption in 6 months at least.
A trader from China confirmed that they did not import Malaysian bauxite in September due to soft demand. “Some Chinese consumers suspend bauxite purchase due to tight capital supply,” said the source, who once imported around 40,000-50,000t of Malaysian bauxite in August at around USD40/t CIF China.
Given the demand shrink, the trader anticipated that Malaysian bauxite prices may slide down a bit.
According to Asian Metal, before the rainy season in Malaysia, most bauxite owners will manage to supply more at lower prices. In addition, major Chinese buyers ask for lower bauxite prices due to MYR depreciation.
A Chinese alumina producer, who purchased around 200,000t of Malaysian bauxite per month in H1 2015, reported that they may only buy around 100,000t of the material in September. “The price for bauxite Al 40%min Si 4%max is around USD30/t FOB Malaysia,” said the source, anticipating that the price may retreat due to the weak demand.
According to the source, Chinese alumina market is sluggish and some alumina producers may cut production in the short term due to losses. In addition, most consumers hold sufficient bauxite stocks, stated the source.
They consume around 500,000-600,000t of bauxite per month and hold stocks enough for consumption in 6 months at least.
A trader from China confirmed that they did not import Malaysian bauxite in September due to soft demand. “Some Chinese consumers suspend bauxite purchase due to tight capital supply,” said the source, who once imported around 40,000-50,000t of Malaysian bauxite in August at around USD40/t CIF China.
Given the demand shrink, the trader anticipated that Malaysian bauxite prices may slide down a bit.
According to Asian Metal, before the rainy season in Malaysia, most bauxite owners will manage to supply more at lower prices. In addition, major Chinese buyers ask for lower bauxite prices due to MYR depreciation.
Bauxite Guinean 45%min CIF China
Unit:USD/dt
Africa bauxite producers' inventory to production ratio statistics by country by month
Unit: %
