Guinea bauxite prices under pressure and pull back, domestic bauxite spot market remains stable in operation

This week, the domestic bauxite market mainly operated steadily.

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

Imported bauxite:

According to data from February 7, the weekly port arrivals of bauxite at domestic ports totalled 3.1809 million tonnes, a decrease of 955,900 tonnes compared to the previous week; the weekly port departures of bauxite from Guinea's main ports totalled 2.6859 million mt, down by 287,700 tonnes from the previous week; the weekly port departures of bauxite from Australia's main ports totalled 443,100 tonnes, a decrease of 291,700 tonnes from the previous week.

In terms of prices, demand side, spot alumina prices continued to decline, and alumina refineries have lowered their acceptance of high-priced bauxite. According to SMM, buyers currently report being unable to accept imported Guinean bauxite priced above USD 100 per tonne. Supply side, although suppliers reduced their quotes from high levels before the holiday, considering the newly commissioned alumina capacity and the rigid demand for alumina production, suppliers still showed sentiment to stand firm on quotes. Currently, there is still a tug-of-war between sellers and buyers in the bauxite market, and in the short term, bauxite prices may shift to a volatile trend.

SMM comments:

Alumina prices have dropped significantly, and due to the narrowing profit margins of alumina, bauxite prices faced downward pressure this week. However, the tug-of-war between buyers and sellers has not yet ended, and there remains a significant disparity in spot market quotes for imported bauxite. Suppliers still show sentiment to stand firm on quotes, making it difficult for bauxite prices to see a substantial decline in the short term. In the near term, bauxite prices may enter a phase of volatile adjustment.

Source: SMM