New Environmental Regulations to Favor Bauxite Prices in China, SMM Expects 

SHANGHAI, Jul. 19 (SMM) – On June 13, China’s Ministry of Environmental Protection issued revised document on aluminum industry pollutant discharge standard (for seeking public opinions).

According to the new standard, crushing plants are required to crush and sort in airtight buildings and install de-dusting equipment. The new rule might take effect in the “2+26” key regions for environmental protection, namely Beijing, Tianjin, and 26 smaller cities in the Beijing-Tianjin-Hebei region and nearby areas, on October 1, 2017. 

SMM: China Aluminum Stocks Hit Over 4-Year High

Bauxite crushing plants in Shanxi and Henan, major bauxite producing provinces, were taken a big hit by last round of environmental protection checks. This, combined with alumina producers’ growing demand for bauxite, allowed bauxite prices in Henan to keep rising since the start of this year. SMM learned bauxite suppliers in Shanxi, Guizhou and Guangxi are still shipping bauxite to Henan. Despite this, bauxite supply in Henan remains tight. 

Potential Surplus from Aluminum Capacity Cuts to Weigh on Alumina Prices, SMM Warns

To sum up, SMM expects bauxite prices in domestic market to stay high for the foreseeable future.  

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