Bauxite Prices in Shanxi fail to leap significantly despite tight supply

<p>Despite tight bauxite supply in Shanxi, local market prices for bauxite rose only slightly recently.&nbsp;Currently, average price for Bauxite (6.0&le;Al/Si<7.0) at Shanxi ranges between RMB 350 &ndash; 400/t and Bauxite (4.5&le;Al/Si<5.5) at Shanxi ranges between RMB 260 &ndash; 310/t.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/china%20bauxite1.jpg" alt="News" width="500" height="266" /></p> <p>SMM informs that one large local alumina producer grants additional RMB30/t above market prices to those bauxite suppliers who could guarantee over 30,000 tonnes of supply every month.&nbsp;In our last news update, it was learned that all bauxite mines in Shanxi that lack production licenses were ordered to close during August 14-September 14.</p> <p>Bauxite shortage has already affected domestic alumina production causing tightness in alumina supply and showed signs of price rise in alumina. China&rsquo;s domestic alumina price rebounded slightly on August 17, driven by an outlook on tightened supply.&nbsp;However, whether alumina prices will rise across the board will partly depend on the amount and sales prices of alumina from Shandong Weiqiao Group.&nbsp;</p> <p>{googleAdsense}</p> <p>Alumina prices are currently subdued because of the news of aluminium capacity cut and resulting slow demand for alumina in China. This has discouraged alumina producers to increase production keeping bauxite demand in check. This could be one reason why bauxite prices in Shanxi have not registered a significant leap despite tight supply.</p> <p>&nbsp;</p>