The Price Discrepancy Between Buyers and Sellers of Bauxite Intensifies, Short-Term Bauxite Prices May Face Downward Pressure [SMM Bauxite Weekly Review]

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SMM March 27 News:

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 aluminum-silicon ratio of 5.0 and alumina content of 60% in Shanxi was approximately 630-670 yuan/mt; in Henan, the VAT-excluded self pick-up transaction price for bauxite with an aluminum-silicon ratio of 5.0 and alumina content of 60% was around 560-600 yuan/mt; in Guizhou, the VAT-excluded self pick-up transaction price for bauxite with an aluminum-silicon ratio of 5.5 and alumina content of 58% was 480-520 yuan/mt; in Guangxi, the VAT-excluded self pick-up transaction price for bauxite with an aluminum-silicon ratio of 6.0 and alumina content of 53% was 320-335 yuan/mt.

Imported Bauxite:

According to data on March 21, the weekly total bauxite arrivals at domestic ports were 4.2601 million mt, an increase of 115,000 mt WoW; the weekly total bauxite departures from main ports in Guinea were 3.3296 million mt, a decrease of 1.263 million mt WoW; the weekly total bauxite departures from main ports in Australia were 581,200 mt, a decrease of 545,500 mt WoW.

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 $0.23/mt WoW to $93.16/mt.

According to SMM's daily cost-profit model, as of this Thursday, the theoretical loss in the alumina industry was 88 yuan/mt. 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.

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