CBIX dropped 2.8% (US$1.4/dmt) last week of July, closing at US$48.1/dmt

<p>CBIX dropped 2.8 per cent (US$1.4/dmt), closing at US$48.1/dmt for the week due to two lower ViU cargos from Malaysia re-entering the Chinese market. This is despite a further extension of the Malaysian mining ban, by two months, to September 15th.<br /><br />Malaysian FOB prices remain unchanged at US$26/dmt (non-ViU) for unwashed material. Prices for washed material are approximately US$37/dmt FOB (non-ViU). Rationale for the mining ban extension is the export of all existing stocks (port and mines) and the clearing of stockpile areas outside the Kuantan port area, before normal mining and export arrangements can resume.<br /><br /><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/Bauxite%20Index.png" alt="News" width="688" height="468" /><br /><br />In the interim, miners continue to export out of Kemaman port, 50km to the north of Kuantan, and also from the Johor region in the south. The new stock clearing arrangements will see an increase in exports from Kuantan compared to recent months, and pave the way for 'normal' mining and export operations towards the end of 2016.<br /><br />Chinese domestic alumina prices fell further, with the North down 1.3 per cent (RMB22/t) to RMB1,691/t (US$253/t including VAT) and the South down 4.2 per cent (RMB75/t) to RMB1,725/t (US$259/t including VAT). At these prices we expect some producers to be reviewing their operations, with a view to curtailment should prices fall further.<br /><br />Freight rates fell slightly, as bunker (ship fuel) and vessel charter rates both decreased for all vessel classes.</p>