China's domestic bauxite supply remained low and prices stood at high levels. In a bid to maintain stable operation, some inland refineries purchased bauxite sourced from Turkey and Montenegro with elevated prices due to the decline in stocks of domestic ore.
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In terms of seaborne bauxite, Guinea bauxite (45 per cent, Si:3 per cent) prices stood unchanged for more than two weeks after a slight rebound in early August. However, the price regained upward momentum due to the decrease in shipments and tonnage in transit.
On the supply side, Guinea shipments saw a WoW increase last week, but were still at a low level due to the impact of the wet season and the disruptions in the AXIS Mining area. Mysteel data showed that Guinea's total bauxite shipments over August 15-21 were 3.03 million tonnes, up 57 per cent on the week. With the decrease in unsold Guinea cargoes in the spot market, sellers showed weak selling interest, with a few quotations and spot transactions recently.
According to some market sources, SD Mining and GIC in Guinea are likely to resume production in September. However, the uncertainty still exists. In addition, a major global aluminium group issued a new round of tender this week. Chinese buyers showed higher interest this time compared to the previous tender on the back of low spot supply from Guinea.
On the demand side, China's alumina operating capacity and weekly production stood high amid stable margins, which was positive for bauxite demand and prices. Mysteel data showed that the operating rate of alumina was up slightly to 84 per cent last week, driven by some restarts in Henan and Guizhou. Total operating capacity was 96.3MTPA as of Aug 21, up 600ktpa on the week.
As of August 27, Mysteel's daily assessment for Guinea bauxite (Al:45 per cent, Si:3 per cent) was USD 74.5 per dry metric tonne, rising USD 0.5 per dry metric tonne from a week ago. The assessment for Australian bauxite (Al:50 per cent, Si:6.5 per cent) remained flat at USD 69 per dry metric tonne.
Note: This article has been issued by MYSTEEL and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
For a broader view of the global bauxite market click: A Comprehensive Analysis of Bauxite Residue - Red Mud
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