This week, the price of domestic bauxite in Guizhou fell by RMB 30 per tonne, mainly due to alumina refineries driving down prices when purchasing bauxite.
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As of today, in Shanxi, the transaction price of 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 RMB 580-620 per tonne. In Henan, the transaction price for bauxite with the same specifications was around 550-590 yuan/mt. In Guizhou, the transaction price for bauxite with an Al/Si ratio of 5.5 and 58 per cent alumina content 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 was RMB 320-335 per tonne.
According to data from May 9, the total weekly bauxite arrivals at domestic ports were 4.2227 million tonnes, a decrease of 670,100 tonnes from the previous week. The total weekly bauxite port departures from main ports in Guinea were 3.6292 million tonnes, a decrease of 187,100 tonnes from the previous week. The total weekly bauxite port departures from main ports in Australia were 852,900 tonnes, a decrease of 86,500 tonnes from the previous week.
In terms of prices, the SMM CIF index for imported bauxite fell by USD 7.57 per tonne W-o-W to USD 70.41 per tonne on Thursday this week, mainly due to the inquiry of some Guinea bauxite transactions in the bulk cargo market, with transaction prices falling to around USD 70 per tonne. This week, the CIF price of Guinea bauxite fell by USD 6 per tonne W-o-W to USD 70 per tonne. The price of Australian low-temperature bauxite fell by USD 10 per tonne to USD 70 per tonne, and the price of Australian high-temperature bauxite fell by USD 7 per tonne to USD 65 per tonne.
SMM commentary: With the further decline in bauxite prices and the rebound in alumina prices, the loss pressure on alumina refineries has further decreased. As of May 15, according to SMM's daily cost-profit model, the theoretical profit of alumina was RMB 119 per tonne. With prices falling to USD 70 per tonne, the sentiment of sellers to stand firm on quotes is expected to strengthen.
As the profitability of alumina improves, the operating enthusiasm of alumina refineries is expected to rebound, and the resistance to further driving down ore prices is expected to increase.
However, from a fundamental perspective, the supply of imported bauxite remains at a high level, and the bauxite market is expected to maintain a surplus pattern in the short term, with prices still facing downward pressure. In the short term, bauxite prices may turn volatile. Subsequent attention should be paid to the shipping situation of Guinea bauxite.
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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