Chinese origin bauxite prices to slip
2023-03-21 08:20:59 [Print]
BEIJING (Asian Metal) 21 Mar 23 - From one week ago, bauxite producers from north China started resuming production and the supply would increase gradually to weigh on prices. Current mainstream prices for Chinese origin bauxite Al2O3 60%min Al/Si=5.0 keep at RMB485-505/t (USD71-73/t) Ex-VAT delivered, down by RMB5/t (USD0.73/t) from late last week. As the bauxite supply is increasing, both sellers and buyers anticipate lower bauxite prices early next month.
A Shanxi-based alumina producer reported that they ordered around 170,000t of bauxite Al2O3 58%min Al/Si=5.0 at around RMB465/t (USD68/t) Ex-VAT delivered early this month against the offer of around RMB475/t (USD69/t). "Most suppliers now maintain RMB465/t (USD68/t) and I think the price would go down a bit further early next month as the supply will increase," said the source, who only ordered around 100,000t of bauxite last month.
Based on the consumption capacity of 2.4 million tonnes per year, they would use around 200,000t in March, up from around 140,000t last month and hold around 100,000t in stock now. They used around 2 million tonnes in 2022.
A trader of bauxite in Henan confirmed that they offered around RMB500/t (USD73/t) Ex-VAT delivered for bauxite Al2O3 58%min Al/Si=5.0 early this month and finally sold around 20,000t at around RMB480/t (USD70/t). "We now offer RMB480/t (USD70/t) and buyers request lower prices," said the source, who predicted that prices might reduce further early next month as their regular bauxite suppliers who were out of production last month plan to restart from March 25.
The trader, with the regular sales volume of around 30,000tpm, sold around 20,000t so far this month and around 10,000t last month, with no inventory now. They sold around 400,000t in 2022 and around 60,000t so far this year.
A Shanxi-based alumina producer reported that they ordered around 170,000t of bauxite Al2O3 58%min Al/Si=5.0 at around RMB465/t (USD68/t) Ex-VAT delivered early this month against the offer of around RMB475/t (USD69/t). "Most suppliers now maintain RMB465/t (USD68/t) and I think the price would go down a bit further early next month as the supply will increase," said the source, who only ordered around 100,000t of bauxite last month.
Based on the consumption capacity of 2.4 million tonnes per year, they would use around 200,000t in March, up from around 140,000t last month and hold around 100,000t in stock now. They used around 2 million tonnes in 2022.
A trader of bauxite in Henan confirmed that they offered around RMB500/t (USD73/t) Ex-VAT delivered for bauxite Al2O3 58%min Al/Si=5.0 early this month and finally sold around 20,000t at around RMB480/t (USD70/t). "We now offer RMB480/t (USD70/t) and buyers request lower prices," said the source, who predicted that prices might reduce further early next month as their regular bauxite suppliers who were out of production last month plan to restart from March 25.
The trader, with the regular sales volume of around 30,000tpm, sold around 20,000t so far this month and around 10,000t last month, with no inventory now. They sold around 400,000t in 2022 and around 60,000t so far this year.
