Rising bauxite supply to weight on the price continuously
2017-12-26 08:34:10 [Print]
BEIJING (Asian Metal) 26 Dec 17 - In December Chinese origin bauxite prices dropped by around RMB100/t (USD15/t) because of the rising bauxite supply and sluggish alumina market. Although alumina prices became stable from last week, bauxite prices may continue to go down slightly because of sufficient stocks. Current prices for bauxite Al/Si=5.0 are RMB320-380/t (USD49-58/t) delivered VAT excluded in North China and prices for bauxite Al/Si=6.0 in South China are RMB240-300/t (USD37-46/t) delivered VAT excluded.
A Shanxi-based alumina producer reported that they purchased around 350,000t of bauxite in December and the prices for bauxite Al/Si=5.0 slipped by around RMB100/t (USD15/t) to RMB320-330/t (USD49-50/t) delivered VAT excluded. "I think the price may go down further by around RMB50/t (USD7/t) next month, as the supply is sufficient in the market,"said the source.
According to the source, they need to consume around 500,000t of bauxite per month now, the same with the demand capacity. Currently, they hold stocks for around 40 days, while the stocks were less than 30 days in October. For the expectation that the price will go down further, they have no plan to add more stocks.
A Chongqing-based alumina producer confirmed that they now keep sufficient stocks for demand in one month, while the stocks were enough for only 10 days in early November. "I think the bauxite price may go down further in January because of the rising supply," said the source.
They purchased around 200,000t of bauxite from Guizhou in December and the price for bauxite Al/Si=6.0 was around RMB300/t (USD46/t) delivered VAT excluded, down by around RMB50/t (USD7/t) compared with the price in November. The alumina refinery is running fully at the capacity of 850,000tpy and needs to consume around 110,000t of bauxite per month now.
A Shanxi-based alumina producer reported that they purchased around 350,000t of bauxite in December and the prices for bauxite Al/Si=5.0 slipped by around RMB100/t (USD15/t) to RMB320-330/t (USD49-50/t) delivered VAT excluded. "I think the price may go down further by around RMB50/t (USD7/t) next month, as the supply is sufficient in the market,"said the source.
According to the source, they need to consume around 500,000t of bauxite per month now, the same with the demand capacity. Currently, they hold stocks for around 40 days, while the stocks were less than 30 days in October. For the expectation that the price will go down further, they have no plan to add more stocks.
A Chongqing-based alumina producer confirmed that they now keep sufficient stocks for demand in one month, while the stocks were enough for only 10 days in early November. "I think the bauxite price may go down further in January because of the rising supply," said the source.
They purchased around 200,000t of bauxite from Guizhou in December and the price for bauxite Al/Si=6.0 was around RMB300/t (USD46/t) delivered VAT excluded, down by around RMB50/t (USD7/t) compared with the price in November. The alumina refinery is running fully at the capacity of 850,000tpy and needs to consume around 110,000t of bauxite per month now.
Bauxite 60%min, Al/Si 5.0, Ex-VAT Delivered China
Unit:RMB/mt
Africa bauxite producers' sales to production ratio statistics by country by month
Unit: %
