Alumina refineries show weak purchase willingness at high prices; imported bauxite index prices continue to decline

This week, the domestic bauxite market mainly remained stable. As of Thursday, the transaction price for bauxite with an Al/Si ratio of 5.0 and alumina content of 60 per cent in Shanxi, excluding VAT, for self-pick-up at crushing plants, was approximately RMB 640-670 per tonne. In Henan, the transaction price for bauxite with an Al/Si ratio of 5.0 and alumina content of 60 per cent, excluding VAT, for self-pick-up at crushing plants, was around RMB 570-610 per tonne. In Guizhou, the transaction price for bauxite with an Al/Si ratio of 5.5 and alumina content of 58 per cent, excluding VAT, for self pick-up at crushing plants, was RMB 510-550 per tonne; in Guangxi, the transaction price for bauxite with an Al/Si ratio of 6.0 and alumina content of 53 per cent, excluding VAT, for self pick-up at crushing plants, was RMB 320-335 per tonne.

Imported Bauxite

According to data from February 14, the total weekly port arrivals of bauxite at domestic ports reached 3.9061 million tonnes, an increase of 725,200 tonnes W-o-W; the total weekly port departures of bauxite from Guinea's main ports reached 3.6248 million tonnes, an increase of 938,900 tonnes WoW; the total weekly port departures of bauxite from Australia's main ports reached 470,000 tonnes, an increase of 26,900 tonnes W-o-W.

In terms of prices, alumina refineries in inland areas are generally operating at a loss when purchasing Guinean bauxite at prices above USD 90 per tonne, leading to insufficient purchase willingness. The overall offer prices from Guinean bauxite sellers showed a downward trend. According to SMM, some Guinean bauxite holders have lowered their offers to around USD 95 per tonne, but no actual transactions have been reported.

This week, the SMM Bauxite Index price further declined, currently reported at USD 96.42 per tonne, down USD 1.81 per tonne W-o-W. According to SMM, some Australian bauxite bulk cargoes were previously transacted at prices around USD 90-110 per tonne, with shipments expected to commence in Q1 2025.

This week, SMM Australian bauxite prices saw a supplementary increase. However, in the short term, under the pressure of losses at some domestic alumina refineries, bauxite prices are expected to fluctuate downward.

Source; SMM