Imported bauxite prices dropped back slightly this week. Amidst market negotiations, bauxite prices are expected to fluctuate. [SMM Bauxite Weekly Review]

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SMM News on June 12:

Domestic Bauxite Market:

This week, the domestic bauxite market remained calm, with stable operations prevailing.

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

Imported Bauxite Market:

According to data from June 6, the total weekly bauxite arrivals at domestic ports were 4.8204 million mt, a decrease of 40,000 mt from the previous week. The total weekly bauxite departures from main ports in Guinea were 3.5693 million mt, an increase of 395,500 mt from the previous week. The total weekly bauxite departures from main ports in Australia were 889,700 mt, a decrease of 249,500 mt from the previous week.

In terms of prices, spot transactions of imported bauxite bulk cargo remained sluggish this week. Only one low-grade Guinea bauxite transaction was inquired, with a price below $75/mt for a grade of 45% alumina content and 3% silica content, driving down the SMM CIF index for imported bauxite and the average CIF price for Guinea bauxite. As of Thursday this week, the CIF price for Guinea bauxite was reported at $74.5/mt, a decrease of $0.5/mt from last Thursday. The SMM CIF index for imported bauxite was reported at $74.35/mt, a decrease of $0.59/mt from last Thursday.

SMM Commentary: In the short term, both bullish and bearish factors coexist in the bauxite price market, with buyers and sellers engaging in a tug-of-war. On one hand, in the short term, the supply of imported bauxite is expected to remain high, with the fundamental market showing a surplus and inventory buildup in bauxite. Additionally, spot alumina prices have shown a certain downward trend, and alumina profit margins are expected to narrow, limiting the acceptance of high-priced bauxite. On the other hand, the rainy season in Guinea is approaching, and the previous mining rights issues have not yet been resolved, with subsequent bauxite shipments expected to decline. Sellers are reluctant to budge on prices. In the short term, bauxite prices are expected to fluctuate mainly.

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