Bauxite with an Al/Si ratio of 5 and alumina content of 58 per cent was sold between RMB 425 per tonne to RMB 450 per tonne (including VAT, except resource tax, delivery to factory) in north Shanxi as of June 17. On the same day in Xiaoyi, Shanxi, it was traded between RMB 435 per tonne to RMB 475 per tonne. Bauxite with an Al/Si ratio of 4 and alumina concentration of 58 per cent was traded between RMB 435 per tonne to RMB 480 per tonne in Sanmenxia, Henan (excluding resource tax, including VAT, delivery to factory).
Domestic bauxite prices in the northern areas have risen somewhat this month, from RMB 5 per tonne to RMB 10 per tonne, since obtaining bauxite has become increasingly difficult for alumina mills. Bauxite with an Al/Si ratio of 5.5 was sold for RMB 325 per tonne to RMB 370 yuan per tonne in Guizhou (excluding tax). Bauxite with an Al/Si ratio of 5 and alumina concentration of 58 per cent was traded between RMB 305 per tonne to RMB 320 per tonne (excluding tax) in Guangxi.
As per the reports, the military government of Guinea released a statement requesting the bauxite mining firms to provide the timeline for the construction of alumina refineries in the country within the next 10 days, thus extending the submission deadline. Previously it had requested the firms to submit the project plans and detailed timeframes by the end of May.
The Guinean government also stated that it is planning to set a bauxite reference price, for which the President had directed different departments to analyse the cost of world bauxite and submit the report by June 15 to the Prime Minister.
Imported bauxite prices will increase as demand from Chinese alumina mills grows. The disparity between alumina refineries in terms of negotiating strength, cost control, output, and operations will continue to expand in the future. Alumina refineries with dependable ore supplies may continue to operate as usual, while those in Shanxi, Henan, and Guizhou that did not place long-term contracts and are located distant from ports would see their bauxite costs rise.
At the moment, prominent Chinese firms such as Chinalco and the Weiqiao Group have maintained steady ore mining and transportation in Guinea, which will be unaffected soon. Guinea, on the other hand, may implement bauxite export limitations in the long term. Indonesia has suggested a restriction on ore exports on several occasions, and the export of ore from Guinea is similarly questionable due to the country's fragile rule. Domestic bauxite supply has barely grown.
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