25 JANUARY 2016Bauxite Index
Malaysia bauxite mining ban may be extended further
Edited by : AL CIRCLE
1 min read
Malaysian ban on bauxite mining may be extended. CBIX was down 1.1% (US$0.5) over the week, finishing at US$47.1/dmt, as lower prices from non-Malaysian suppliers continued their trend lower.
Sentiment from Malaysia suggests authorities are likely to take a hard line approach to ensuring bauxite miners meet environmental standards. Given the improvements necessary to meet the standards by most of the miners (lead times on equipment purchase, installation etc), it may take longer to achieve than the three-month duration of the current ban. Some industry insiders are now suggesting the ban may be extended to five months (from three). Miners and exporters are currently clearing stockpiles and planning for the necessary process upgrades.
Despite the turmoil, Malaysian bauxite prices were unchanged over the week, with unwashed bauxite at US$26.0/dmt FOB. The calculated CFR price (ViU adjusted) fell marginally, by 0.8% (US$0.3/dmt), to US$35.1/dmt, due to changes in freight rates.
Chinese domestic alumina prices continued to firm ahead of the Chinese New Year, with the North China domestic alumina price up 1.2% (RMB19/t) to RMB1,637/t (US$249/t including VAT), with the south unchanged on RMB1,535/t (US$233/t including VAT).
Sentiment from Malaysia suggests authorities are likely to take a hard line approach to ensuring bauxite miners meet environmental standards. Given the improvements necessary to meet the standards by most of the miners (lead times on equipment purchase, installation etc), it may take longer to achieve than the three-month duration of the current ban. Some industry insiders are now suggesting the ban may be extended to five months (from three). Miners and exporters are currently clearing stockpiles and planning for the necessary process upgrades.
Despite the turmoil, Malaysian bauxite prices were unchanged over the week, with unwashed bauxite at US$26.0/dmt FOB. The calculated CFR price (ViU adjusted) fell marginally, by 0.8% (US$0.3/dmt), to US$35.1/dmt, due to changes in freight rates.
Chinese domestic alumina prices continued to firm ahead of the Chinese New Year, with the North China domestic alumina price up 1.2% (RMB19/t) to RMB1,637/t (US$249/t including VAT), with the south unchanged on RMB1,535/t (US$233/t including VAT).
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