This week, the domestic bauxite market is stable, even as Guinea bauxite prices face downward pressure. Self-pick-up transaction prices vary by region in China, with imported bauxite deliveries decreasing. Buyer reluctance at high prices and supplier firm quotes suggest ongoing market tension. The market is likely to enter a phase of volatility due to varied pricing and demand dynamics.
The domestic bauxite market observed steady operations this week, despite some pressure on Guinea bauxite prices. As of the latest records, the self-pick-up prices at various crushing plants across China are reported as follows:
– In Shanxi, bauxite with an Al/Si ratio of 5.0 and 60% alumina is priced between RMB 640-670 per tonne.
– In Henan, the same quality bauxite is valued at RMB 570-610 per tonne.
– Guizhou bauxite, with an Al/Si ratio of 5.5 and 58% alumina, is priced at RMB 510-550 per tonne.
– In Guangxi, prices for bauxite with an Al/Si ratio of 6.0 and 53% alumina range from RMB 320-335 per tonne.
For imported bauxite, data from February 7 indicates that domestic port arrivals totaled 3.1809 million tonnes, reflecting a decrease of nearly one million tonnes compared to the previous week. Concurrently, weekly bauxite departures from Guinea’s ports accounted for 2.6859 million tonnes, down by 287,700 tonnes, while Australia’s ports recorded a decline of 291,700 tonnes, totaling 443,100 tonnes.
On the demand side, spot alumina prices continued to tumble, prompting alumina refineries to reduce their acceptance thresholds for high-priced bauxite. Currently, buyers report they cannot consider imported Guinean bauxite priced above USD 100 per tonne. Despite a reduction in suppliers’ quotes from pre-holiday levels, their inclination to maintain firm pricing persists as they balance newly commissioned alumina capacities against the ongoing demand in alumina production.
SMM notes that with alumina prices fluctuating downward, and profit margins tightening, the bauxite market is under pressure. The continuation of a standoff between buyers and sellers indicates that there is still a considerable gap in spot market quotes for imported bauxite. Suppliers remain reluctant to significantly lower their prices, making substantial declines in bauxite prices unlikely in the near term. Consequently, prices may enter a period of volatility amid these market conditions.
In summary, the bauxite market is currently experiencing a stable operation phase domestically, amidst declining Guinea bauxite prices. The interplay between alumina profitability and the market’s supply-demand dynamics is creating a tug-of-war between buyers and suppliers. While prices are under pressure, the potential for significant short-term drops remains limited as market participants navigate a phase of volatility.
Original Source: www.alcircle.com
