As of June 2025, global bauxite prices have declined, primarily due to reduced import volumes in China. At the same time, alumina refineries and ports have reported higher inventory levels, reflecting an oversupplied market. In response to ongoing global supply uncertainties, major Australian producers such as ABx and Rio Tinto are ramping up production. Looking ahead, bauxite demand is expected to rise through the remainder of 2025, driven by expanding infrastructure projects in emerging economies.
The bauxite price in China shows a decline in June 2025, which was mainly due to the high imports from the big producing nations. Moreover, the region has also witnessed a decline in their overall domestic aluminium production by 3.23 per cent month-on-month, directly affecting its overall operating capacity.
Across the globe, the bauxite supply increased, where June 2025 indicates a persistent inventory accumulation concerning both the domestic alumina refineries and port facilities. Month-on-month, 3 per cent and year-on-year, 8.7 per cent growth were witnessed in alumina refineries ' bauxite raw material inventories.
As of now, bauxite inventory in nine different ports has reached the volume of 23.35 million tonnes, holding an extended capacity of 1.79 million tonnes, in comparison to the inventory closed at the end of May. The substantial accumulation from January 2025 stood at 9.37 million tonnes.
The arrival of July witnessed a high demand for bauxite and is deemed to have a loose supply and make a further effective contribution in building up the inventory, especially for the markets facing headwinds.
However, the upcoming rainy season in Guinea, along with the persistent mining rights issue, will create a direct impact on the future bauxite shipments. Since sellers are hesitant to come into a negotiation, the bauxite price may fluctuate in the short term.
The Australian bauxite sector is witnessing heightened activity, driven by recent supply disruptions in Guinea and China that have led to a significant price surge. Capitalising on the market momentum, Rio Tinto is expanding its bauxite output at the Arum mine in Far North Queensland, building on its existing annual capacity of 23 million tonnes.
In parallel, ABx Group is transitioning from a bauxite explorer to a diversified operation, with a focus on bauxite mining, aluminium fluoride production and rare earth element recovery. The company is advancing multiple bauxite projects across Tasmania, Queensland and New South Wales, with its Tasmanian mine slated to commence operations in 2025, pending final planning approvals.
Bauxite is poised for significant growth in the second half of 2025, driven by rising demand for sustainable materials, advancements in aluminium production technologies and accelerating infrastructure development in emerging economies. With stringent environmental regulations and the global transition towards green energy, bauxite is increasingly recognised as a critical raw material across key industrial sectors.
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