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05 FEBRUARY 2018 AL CIRCLE

Bauxite prices in Shanxi province drop RMB 30 per tonne today; domestic prices to stay low on slow demand

EDITED BY : BEETHIKA BISWAS 2MINS READ

According to the latest update from Shanghai Metals Market, average bauxite price has dropped about RMB 30 per tonne in Shanxi province. Today’s Bauxite (6.0≤Al/Si<7.0) price at Shanxi province stands at RMB 340 per tonne.  Bauxite (4.5≤Al/Si<5.5) price in Shanxi stands at RMB 270 per tonne.  

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If we look at the trend in last one year, bauxite prices started gaining in August after remaining flat since the beginning of 2017. Bauxite prices started gaining in August. China-origin refractory-grade bauxite prices and metallurgical bauxite prices started increasing as the government ramped up efforts to reduce pollution. Near-complete shutdown of Chinese refractory-grade bauxite production has lifted spot prices. Only a tiny minority of plants that met strict environmental standards were allowed to operate following the environmental inspections and Beijing shut down most bauxite mines in Shanxi province. Raw bauxite supply remained scarce due to mining restrictions.  Bauxite mines were unexpectedly swept into the shutdowns along with alumina and aluminium, creating a domino effect on the supply chain. Prices reached the peak in November at RMB 445 per tonne.

However, the downturn started again in November itself when winter capacity cut started and alumina plants were shut down. Lower consumption and demand brought down the Bauxite (6.0≤Al/Si<7.0) prices at Shanxi prices to the present level of RMB 320 – 360 per tonne and Bauxite (4.5≤Al/Si<5.5) prices to the level of RMB 240 – 300 per tonne.  The market will remain tight in the short term but prices will not soar much as China will be importing most of its bauxite requirement.

Alumina prices have not registered any significant movement today. Today’s average alumina price stands at RMB 2889 per tonne, slightly down from last reported price. The average price of Chinese domestic alumina in four major regions stood at RMB 2,820 per tonne, down RMB 35 per tonne from Friday. South China spot alumina price dropped to RMB 2,820 per tonne. Chalco Alumina and imported alumina prices remain unchanged today.

 

Tagged with:

Bauxite price China

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EDITED BY : BEETHIKA BISWAS 2MINS READ

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