Imported ore prices may remain stable in the short term. Continuous attention should be paid to the shipping situation of imported bauxite [SMM Bauxite Weekly Review]

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SMM reported on July 10:

Domestic bauxite market:

This week, the domestic bauxite market remained quiet, with stable operations. As of today, in Shanxi, the self pick-up price of bauxite with an Al/Si ratio of 5.0 and 60% alumina content, excluding VAT, at the crushing plant, was approximately 580-620 yuan/mt; in Henan, the self pick-up price of bauxite with an Al/Si ratio of 5.0 and 60% alumina content, excluding VAT, at the crushing plant, was around 550-590 yuan/mt; in Guizhou, the self pick-up price of bauxite with an Al/Si ratio of 5.5 and 58% alumina content, excluding VAT, at the crushing plant, was 410-450 yuan/mt; in Guangxi, the self pick-up price of bauxite with an Al/Si ratio of 6.0 and 53% alumina content, excluding VAT, at the crushing plant, was 320-335 yuan/mt.

Imported bauxite market:

According to data on July 10, the total weekly port arrivals of bauxite at domestic ports were 4.1175 million mt, a decrease of 481,700 mt from the previous week; the total weekly port departures of bauxite from main ports in Guinea were 2.5781 million mt, a decrease of 15,000 mt from the previous week; the total weekly port departures of bauxite from main ports in Australia were 1.3801 million mt, an increase of 302,200 mt from the previous week.
 

In terms of prices, the spot bulk cargo transactions of imported bauxite remained sluggish this week, with overall stable prices. As of Thursday this week, the CIF price of Guinea bauxite was reported at $74/mt, unchanged from Thursday last week; the SMM imported bauxite index was reported at $74.32/mt, an increase of $0.02/mt from Thursday last week. In the short term, the bauxite market fundamentals are expected to remain relatively loose, and the impact of reduced shipments from Guinea is expected to be reflected in the domestic port arrival data in August. In the short term, imported bauxite prices are expected to fluctuate rangebound.

SMM commentary:

The weekly port departures of bauxite from main ports in Guinea have declined for three consecutive weeks. Based on a 45-day shipping time, it is expected that there will be a significant decrease in port arrivals in August. According to SMM, the inventory of bauxite at ports and alumina refineries remains high. In the short term, the market is not expected to experience a significant shortage, and bauxite prices are expected to fluctuate rangebound in the short term.

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