Bauxite - Analysis And Reports
• ViU is critical in any discussion about bauxite prices
• Bauxite grades and qualities vary significantly within and between countries
• After ViU-adjustment, unwashed Malaysian bauxite currently trades at a
significant discount to other sources (delivered Shandong)
• Chinese ‘merchant’ alumina producers using imported bauxite remain the
highest cost producers in China.
• At current depressed alumina prices, we may see additional Chinese alumina
refining capacity closures. High cost producers using imported bauxite are most
at risk, although vertical integration may provide some protection.
• Over the longer term, China’s imported bauxite needs are likely to grow.
• The market is likely to become more efficient in its pricing mechanism.
