Bauxite prices CIF China up by 0.3% over the week ending 22 July closing at US$49.5/dmt

<p>CBIX steady Value-In-Use adjusted bauxite prices CIF China rose marginally over the week, up by 0.3 per cent (US$0.2/dmt), closing at US$49.5/dmt. Prices for bauxite originating from Australia&rsquo;s Gove mine pulled back slightly, offset by higher priced material from Weipa and Brazil. Malaysian FOB prices were unchanged at US$26/dmt for unwashed material, although Malaysian volumes remain well down on their peaks from earlier this year. We expect to see more cargos arriving in China from Malaysia now that larger miners have resumed mining operations in Kuantan.<br /><br />Chinese domestic alumina prices fell further last week, with the North down 1.6 per cent (RMB27/t) to RMB1,713/t (US$256/t including VAT) while the South was down 1.1 per cent (RMB20/t) to RMB1,800/t (US$269/t including VAT). Chinese alumina prices have now fallen over RMB200/t (US$30/t) in a little over six weeks, demonstrating how reactive China's domestic refining industry has become to short-term supply demand forces. With alumina inventories continuing to run high, alumina prices could continue to fall further over the coming weeks.<br /><br />Bunker (ship fuel) prices decreased slightly during the week, however a rise in Panamax daily charter rates saw overall Panamax rates up. Panamax rates from Malaysia to Shandong remain around US$5.5/wmt, with capesize rates Guinea to Shandong at around US$9.9/wmt.</p> <p><img src="http://www.alcircle.com/uploads/images/Bauxite25.7.16.png" alt="News" width="620" height="422" /></p>