CBIX retreats 2.7% to close at US$46.9/dmt

<p>CBIX retreated 2.7 per cent (US$1.3/dmt) over the week, closing at US$46.9/dmt. The fall signalled the return of some Malaysian bauxite to the Chinese market, which is typically priced lower (on a value-adjusted basis) than cargos from other countries. Malaysia&rsquo;s return weighed heavily on this week's closing price. Malaysian FOB prices remain unchanged at US$26/dmt for unwashed material, with washed material still selling for US$37/dmt FOB.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/Bauxite%20Index%209.7.16.jpg" alt="News" width="621" height="421" /><br /><br />Guinean bauxite continues to be exported to China in increasing volumes, with both cape and panamax vessels now routinely arriving in China. Prices do vary, although recent data suggests high-grade Guinean material is currently fetching US$49/dmt CFR, which equates to a CBIX value of US$43/dmt.<br /><br />Chinese domestic alumina prices are treading water, with the North China domestic alumina price up 1.2 per cent (RMB21/t) to RMB1,712/t (US$258/t including VAT) and the South down 0.3 per cent (RMB5/t) to RMB1,720/t (US$259/t including VAT).<br /><br />Freight rates again slipped lower, on the back of both lower bunker (ship fuel) prices and vessel charter rates. Australian panamax rates to China are currently estimated at US$4.6/wmt.</p>