Market Quotes and Analysis of Bauxite in October

In October, the market price of 80 shaft kiln bauxite in Yangquan was about 850-950 Yuan/ton, 85 down-draft kiln bauxite about 1350-1450 Yuan/ton, and 88 down-draft kiln bauxite about 1550-1650 Yuan/tons. Some companies’ quotes were increased by 30 Yuan/tons, and the overall prices were slightly adjusted.

It is reported that the supply situation of bauxite raw ore has been more serious, and with stricter and stricter domestic mining management work, ore prices are also rising and raw ore supply situation will worsen in the future. Domestic iron ores are in short supply, which is affected by State policies. More and more companies are moving their target to the import.

According to customs data, China's bauxite imports were18000 tons from January to September, increasing 641.9% from a year earlier, and the import amount was $3.892 million, increasing 514.1% on year-on-year basis, which had a sharp growth on import quantity. Among them, the imports from Guyana were about 16000 tons, accounting for over 88% of the total import quantity.

Insiders said that Indonesia was the largest source of imports of bauxite, and China's bauxite imports from Indonesia accounted for more than 70% of the total, but now the ban implementation had more than two years in Indonesia. With the passage of time, Indonesia seems to have become “yesterday”, gradually replaced by Guyana bauxite. However, there is news that the Indonesian mine ban policy may relax, and bauxite imports of resources in China, may be more lenient.

According to the analysis, although the domestic bauxite ores are in short supply, the import quantity is still large, and affected by this, domestic bauxite clinker prices should not have too big change. However, the increasing coal prices may lead to high bauxite prices, which still needs to pay close attention to.