Domestic Bauxite: This week, the domestic bauxite market remained stable. According to SMM, as spot alumina prices further declined, alumina refineries may once again lower the purchase price of domestic bauxite for next month.
As of today, the VAT-excluded self-pick-up transaction price for bauxite with an aluminium-silicon ratio of 5.0 and alumina content of 60 per cent in Shanxi was approximately RMB 630-670 per tonne; in Henan, the VAT-excluded self-pick-up transaction price for bauxite with an aluminium-silicon ratio of 5.0 and alumina content of 60 per cent was around RMB 560-600 per tonne; in Guizhou, the VAT-excluded self-pick-up transaction price for bauxite with an aluminium-silicon ratio of 5.5 and alumina content of 58 per cent was RMB 480-520 per tonne; in Guangxi, the VAT-excluded self-pick-up transaction price for bauxite with an aluminium-silicon ratio of 6.0 and alumina content of 53 per cent was RMB 320-335 per tonne.
Imported bauxite: According to data on March 21, the weekly total bauxite arrivals at domestic ports were 4.2601 million tonnes, an increase of 115,000 tonnes W-o-W; the weekly total bauxite departures from main ports in Guinea were 3.3296 million tonnes, a decrease of 1.263 million tonnes W-o-W; the weekly total bauxite departures from main ports in Australia were 581,200 tonnes, a decrease of 545,500 tonnes W-o-W.
In terms of prices, the tug-of-war between buyers and sellers of bauxite continued, with no actual transactions reported. Due to the decline in caustic soda prices in Shandong, the SMM imported bauxite CIF index price decreased slightly by USD 0.23 per tonne W-o-W to USD 93.16 per tonne.
According to SMM's daily cost-profit model, as of this Thursday, the theoretical loss in the alumina industry was RMB 88 per tonne. In the short term, under the pressure of losses, alumina refineries may further lower their intended purchase prices for bauxite.
Recently, the price divergence between buyers and sellers of bauxite has intensified, with no actual transactions occurring, and the tug-of-war may continue. Overall, the supply-demand pattern of bauxite may become more relaxed than before, and coupled with the pressure of losses in alumina refineries, bauxite prices may remain under pressure in the short term.
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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