Chinese inland alumina refineries see bauxite stocks increase
2017-11-28 08:36:24 [Print]
BEIJING (Asian Metal) 28 Nov 17 - In October, alumina refineries in Henan and Shanxi were troubled with tight bauxite supply because of strict environmental inspection during the 19th Congress of CPC. From the middle of November, more bauxite producers resumed production and supply increased. Prices for bauxite Al/Si=5.0 are high-held at RMB370-460/t (USD56-70/t) delivered VAT excluded, which may go down in December.
An alumina producer in Shanxi reported that they need to consume around 200,000t of bauxite per month and now keep stocks for consumption in around two months. “The stocks early this month were only enough for around twenty days,” said the source, adding that the annual demand capacity for the material is 2.3 million tonnes.
According to the source, a number of bauxite producers resumed production this month, leading to supply increase. They purchased around 330,000t of bauxite in November, up from around 100,000t last month. The price for bauxite Al/Si=5.0 is around RMB450-460/t (USD68-70/t) in November, up from around RMB430/t (USD65/t) last month, noted the source, who predicted that the price may drop next month because of supply increase and alumina prices slip.
Another alumina producer in Shanxi with bauxite demand capacity at 5.5 million tonnes per year confirmed that they have more bauxite stocks in November. “We hold stocks for demand in one and a half month now while the stocks are not enough for one month in October,” said the source, adding that they need to consume around 450,000t of bauxite per month.
The source noted that they purchased around 700,000t of bauxite this month, more than 400,000t in October. He explained that more bauxite producers in Shanxi resumed production because of higher prices and loosening environmental protection policy and demand in Henan became weak after refineries cut production.
According to the source, their purchase price for bauxite Al/Si=5.0 was around RMB380/t (USD58/t) in November, up by around RMB10/t compared with the price in October. Because of rising supply, he predicted that bauxite prices may go down in December.
An alumina producer in Shanxi reported that they need to consume around 200,000t of bauxite per month and now keep stocks for consumption in around two months. “The stocks early this month were only enough for around twenty days,” said the source, adding that the annual demand capacity for the material is 2.3 million tonnes.
According to the source, a number of bauxite producers resumed production this month, leading to supply increase. They purchased around 330,000t of bauxite in November, up from around 100,000t last month. The price for bauxite Al/Si=5.0 is around RMB450-460/t (USD68-70/t) in November, up from around RMB430/t (USD65/t) last month, noted the source, who predicted that the price may drop next month because of supply increase and alumina prices slip.
Another alumina producer in Shanxi with bauxite demand capacity at 5.5 million tonnes per year confirmed that they have more bauxite stocks in November. “We hold stocks for demand in one and a half month now while the stocks are not enough for one month in October,” said the source, adding that they need to consume around 450,000t of bauxite per month.
The source noted that they purchased around 700,000t of bauxite this month, more than 400,000t in October. He explained that more bauxite producers in Shanxi resumed production because of higher prices and loosening environmental protection policy and demand in Henan became weak after refineries cut production.
According to the source, their purchase price for bauxite Al/Si=5.0 was around RMB380/t (USD58/t) in November, up by around RMB10/t compared with the price in October. Because of rising supply, he predicted that bauxite prices may go down in December.
Alumina 98.5%min EXW China
Unit:RMB/mt
China alumina producers' inventory statistics by province by month
Unit: mt
