This week, the domestic bauxite market remained calm, with stable operations prevailing.
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As of today, in Shanxi, the transaction price for bauxite with an Al/Si ratio of 5.0 and 60 per cent alumina content, excluding VAT, for self-pick-up at the crushing plant, was approximately 580-620 per tonne. In Henan, the transaction price for bauxite with an Al/Si ratio of 5.0 and 60 per cent alumina content, excluding VAT, for self-pick-up at the crushing plant, was around RMB 550-590 per tonne. In Guizhou, the transaction price for bauxite with an Al/Si ratio of 5.5 and 58 per cent alumina content, excluding VAT, for self-pick-up at the crushing plant, was RMB 410-450 per tonne. In Guangxi, the transaction price for bauxite with an Al/Si ratio of 6.0 and 53 per cent alumina content, excluding VAT, for self-pick-up at the crushing plant, was RMB 320-335 per tonne.
Imported Bauxite Market:
According to data from June 6, the total weekly bauxite arrivals at domestic ports were 4.8204 million tonnes, a decrease of 40,000 tonnes from the previous week. The total weekly bauxite departures from main ports in Guinea were 3.5693 million tonnes, an increase of 395,500 tonnes from the previous week. The total weekly bauxite departures from main ports in Australia were 889,700 tonnes, a decrease of 249,500 tonnes from the previous week.
In terms of prices, spot transactions of imported bauxite bulk cargo remained sluggish this week. Only one low-grade Guinea bauxite transaction was inquired, with a price below USD 75 per tonne for a grade of 45 per cent alumina content and 3 per cent silica content, driving down the SMM CIF index for imported bauxite and the average CIF price for Guinea bauxite. As of Thursday this week, the CIF price for Guinea bauxite was reported at USD 74.5 per tonne, a decrease of USD 0.5 per tonne from last Thursday. The SMM CIF index for imported bauxite was reported at USD 74.35 per tonne, a decrease of USD 0.59 per tonne from last Thursday.
SMM Commentary: In the short term, both bullish and bearish factors coexist in the bauxite price market, with buyers and sellers engaging in a tug-of-war. On one hand, in the short term, the supply of imported bauxite is expected to remain high, with the fundamental market showing a surplus and inventory buildup in bauxite. Additionally, spot alumina prices have shown a certain downward trend, and alumina profit margins are expected to narrow, limiting the acceptance of high-priced bauxite. On the other hand, the rainy season in Guinea is approaching, and the previous mining rights issues have not yet been resolved, with subsequent bauxite shipments expected to decline. Sellers are reluctant to budge on prices. In the short term, bauxite prices are expected to fluctuate mainly.
Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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