ABx is selling into the strengthening cement & fertiliser markets until Chinese demand recovers

<p>Current trends in the metallurgical grade Chinese markets are encouraging and ABx is beginning to engage with potential customer refineries &ndash; but current prices still need to rise a bit yet.</p> <p>In the meantime, ABx will grow its bauxite business by supplying cement-grade bauxite for making high-strength cement and supplying fertiliser-grade bauxite for making superphosphate fertiliser. As demand for stronger, low alkali cement increases for infrastructure construction (especially in the USA), demand should increase for cement-grade bauxite of the type marketed by ABx. ABx bauxite is exceptionally low in alkali salts and is quartz-free.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/88111_01_h.jpg" alt="news" width="448" height="304" />&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;</p> <p><strong>Infrastructure construction markets</strong></p> <p>ABx may sell more cement-grade bauxite because of the proposed increase in infrastructure construction that is being proposed by the new US administration. ABx bauxite is suitable for all infrastructure construction, be it bridges, tunnels or roads.</p> <p>ABx&rsquo;s low-sodium, low alkali cement-grade bauxite supplies the right forms of Al2O3, Fe2O3 and SiO2 in the correct ratio to increase the production rate of extra-strong, corrosion-resistant Portland cement, by stopping kiln blockages, reduces fuel consumption and saves wear and tear on the kiln refractory brick linings.</p> <p>Several North American cement-grade bauxite customers are reporting bullish outlooks for high-strength cement as the new American administration embarks on a major rebuilding of the USA&rsquo;s infrastructure. ABx will be a beneficiary should this promise become reality. The demand for fertiliser also continues to grow.</p> <p>Validation feedback: The performance of ABx cement-grade bauxite through the kilns and resulting cement products have been exemplary. &ldquo;ABx bauxite is the best favour you can do for yourself and your cement plant.&rdquo;</p> <p><strong>Metallurgical Grade Bauxite Market (for aluminium production) SIGNS OF RECOVERY?</strong>&nbsp;<br /> <br /> Metallurgical-bauxite prices fell in 2015-16, steadied in late 2016, showed weak signs of improvement in early 2017 and have risen recently, especially since the Guinean government announced its intention to curb bauxite exports to encourage more alumina refining in Guinea, just as Indonesia did in 2010-14. However, this price increase could just be due to a seasonal increase in higher-priced bauxite from Guinea and a seasonal reduction in lower-priced Australian bauxite. Some reports suggest that price increases from some countries are due to tax rule changes.&nbsp;</p> <p>{googleAdsense}<br /> <br /> Other than slight rises in average bauxite prices for Indian bauxite and Malaysian bauxite (both similar to ABx's bauxite), bauxite prices have been flat, but the quantity from Guinea has grown strongly (doubling in the last 6 months to 2.336 million tonnes in May'17) whilst lower-priced tonnes from Australia have fallen by 30%.&nbsp;<br /> <br /> The Chinese metallurgical bauxite market was severely disrupted in 2015 &amp; 2016 by oversupply from Malaysia, Guinea and Australia when Chinese demand was weakening. Demand is catching up, prices have stabilised and are expected to improve in 2018. ABx will sell metallurgical bauxite when prices and demand are attractive.&nbsp;<br /> <br /> The CBIX leading price indicator shows a rising average bauxite price in April and May 2017 but this could be seasonal as tonnages of higher-priced bauxite supply increases?&nbsp;<br /> <br /> Prices for metallurgical bauxite remain unattractive to build new mines dedicated to only supplying Chinese alumina refineries. This is why ABx continues to develop its cement markets for cement-grade bauxite and to diversify its range of customers.&nbsp;</p> <p>Australian Bauxite Limited (ABx) has its first bauxite mine in Tasmania and holds the core of the Eastern Australian Bauxite Province.</p>