Asian Metal News
Local bauxite supply began tightening in early October, which together with pre-stocking activities of local alumina refineries (which began in mid-October) has further shored up bauxite prices in Shanxi. At present, bauxite prices for A/S 5.0 grade stand at RMB 540/t, up RMB 30/t w-o-w, with an estimate for prices to hold firm on this level next week.
One Shanxi buyer (a refinery) reported a 10 kt bauxite deal for A/S ratio 5.0 grade at RMB 540/t, delivered without taxes early this week. In comparison, the buyer had purchased 70 kt of bauxite of the same grade at RMB 510/t in early October. According to the buyer, they currently hold stocks for 20-days operation, however they are looking to build up stocks to sustain a minimum two-months of operation given shrinking local supply. The refinery is considering using imported bauxite in 2020.
The refinery is capable of consuming 1.5 mtpy bauxite per annum. Its October bauxite consumption was 120 kt and it currently holds 80 kt bauxite in stock. The company consumed 900 kt of bauxite in 2018 and its total bauxite consumption in the year to date totals 600 kt.
Another Shanxi refinery reported receiving bauxite quotations for A/S ratio 5.0 grade at RMB 530/t, delivered without taxes early this week. The refinery expects bauxite transaction prices to stand above RMB 530/t next week driven by suspension of local mines from early October. They sourced 150 kt of bauxite of A/S ratio 5.0 grade at RMB 510/t two weeks ago, and plan to keep their stocks stable at this level before winter.
The refinery is capable of consuming 900 kt of bauxite per annum, and its October bauxite consumption was 60 kt, the same as September. It consumed 800 kt of bauxite in 2018 and total bauxite consumption in the year-to-date totaled 600 kt.
