China bauxite prices may go up as supply shrinks; prebaked anode price rises in Southwest China

Bauxite prices in China major market are awaiting a rise after a prolonged lull, as supply shortage of the raw material seems to be brewing up. China’s bauxite output dropped in June 2017 creating a supply crunch for the production of calcined refractory material. Industry watchers believe- overall bauxite prices in China major markets will rise after the increase in spot calcined bauxite prices. Reduced use of dynamite in bauxite mining sector in China and overall mining restrictions resulted in decreased production of the ore in June this year.

As on July 31, China bauxite prices stand unchanged as follows:

The price of another key aluminium raw material- prebaked anode (TY-1) edged higher in Southwest China market. Prebaked anode price which stood fairly static at RMB 3,600 per tonne till July 31, jumped to RMB 3,800 per tonne on August 1. The price rise of 5.56 per cent (RMB 200 per tonne) can be attributed to strengthening demand in the regional market.

A00 aluminium ingot prices climbed up across China major markets. The highest price rise was registered in A00 Aluminium Ingot (East China)-Jiangsu which stood at RMB 14,235 per tonne on August 1, up 0.71 per cent its previous price of RMB 14,135 per tonne. The highest price was recorded for A00 Aluminium Ingot (South China), which rose from RMB 14,215 on July 31, to RMB 14,310 on August 1.

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The price of aluminium alloy (A356) also rose from RMB 14,850 per tonne on July 31, to RMB 14,900 per tonne on August 1. Aluminium alloy (A380) price remains unchanged at RMB 15,500 per tonne as on Tuesday, August 1, SMM data suggests.