Domestic Bauxite Price May Rebound, Especially in Shanxi

With gradually improvement of alumina market, especially in the second quarter, alumina prices have increased to 1900 yuan. Domestic alumina enterprises are significantly increased in restoring production and yield increase. The demand for bauxite rises significantly, and the bauxite prices may slightly rebound, especially in Shanxi.

According to the research, there is a significant rise in the prices of bauxitein in Shanxi recently, and the prevailing price of bauxite with aluminum content of 60%, A/S, 5.5 is about 240-250 yuan/ton, with 10-20 yuan rise than last month.

According to statistics, since the beginning of this year, China has had 6 million tons of alumina yield increase, and new capacity also reaches 3 million tons, especially in Shanxi, including 1 million tons of production capacity of Chinalco Huaxing, 800000 tons of production capacity of , Jinzhong Hope I, and a small amount of flexible production capacity of Guodian and other enterprises.

The total capacity has reached to 3.4 million tons, and the direct demand of bauxite rises about 8 million tons, which results tight bauxite supply in a short time in Shanxi. Now all the alumina suppliers are active to search goods, and local effective mine supply is limited, so there is an obvious rise in the prices of bauxite.

In addition, we also learn that as alumina prices in Guizhou stabilize 1900 yuan/ton, local bauxite prices have also rebounded. At present, the bauxite prices with aluminum content of 60%, A/S6 are still around 170-180 yuan. It is expected that it will have 10-20 yuan rise in prices in the later period.