Growing Supply And Weakening Demand Led To An Inventory Buildup Of Bauxite

SMM March 28 News:

In terms of domestic bauxite supply in China, according to SMM estimates, China's bauxite production in March 2025 (31 days) increased by 16.6% month-on-month (MoM) and 13.5% year-on-year (YoY). This rise is mainly attributed to the low production levels in Henan and Shanxi province in March 2024.

Regarding inventory, SMM data indicates that the total raw material inventory of bauxite in China's alumina refineries in March 2025 remained largely unchanged, experiencing only a slight increase of 0.1% MoM and a decrease of 0.5% YoY. As of March 28, SMM statistics show that the total bauxite inventory at nine major Chinese ports stood at 16.06 million metric tons (mt). This represents an increase of 1.5 million mt from the previous month-end, primarily due to a rise in imported bauxite supply.

SMM Brief Review: On the supply side, domestic bauxite supply in China remains limited, showing minimal growth. However, the increase in imported bauxite has contributed to the overall growth in bauxite supply in the country. On the demand side, under the pressure of losses, the operating capacity of China's metallurgical alumina sector declined in March, with further reductions anticipated in April. This may lead to a temporary decrease in bauxite demand. Overall, the fundamentals of bauxite supply and demand in China may ease compared to the previous period, potentially exerting downward pressure on bauxite prices in the short term.