3 minute read
Current Situation of Bauxite, Alumina, Corundum and Silicon Carbide Market in China
from 101 China Grinding
I. Bauxite Market
1.Market overview:
In August, the price center of China's domestic bauxite market was slightly adjusted, and the price change was mainly reflected in the price center of the mainstream market in the northern Henan region rising by about 20 CNY/ton. Due to the impact of cost pressure in the early stage, some enterprises have maintained the phenomenon of cost inversion for a long time. In order to alleviate the phenomenon of narrow profit margin of enterprises, most alumina enterprises have lowered the benchmark price of enterprises. However, in August, the impact of the rainy season was gradually reflected. Mining and transportation in various regions were affected to varying degrees. The spot supply in the market decreased again, and the tension between supply and demand intensified. The favorable support for domestic ore prices was obvious, leading to an increase in the focus of ore prices in some areas this month. In addition, the local government of Pinglu County, Shanxi Province went deep into Caochuan Town, Pinglu County to supervise and resolutely crack down on illegal mining activities in the Yellow River Basin. During the inspection, it was found that the local mines still had the phenomenon of inadequate rectification, and the control of mining and other aspects was strengthened. To a certain extent, it has a certain impact on the spot supply of ore. The price of mainstream ore in the southern region has not been significantly adjusted for the time being this month. The overall supply situation is relatively considerable compared with that in the north. However, due to the impact of the mine accident in the early stage, some enterprises in Guangxi have produced and consumed the ore inventory of enterprises. Moreover, the spot circulation of low sulfur ore in the market in Guizhou is tight and the price is running firmly. However, due to the obvious price reduction mentality of downstream alumina enterprises, the overall price trend is flat.
In terms of imported ore, the sea freight for imported ore declined as a whole this month, but due to the shortage of tradable spot resources, the market is still dominated by executive orders. Secondly, the impact of the rainy season in Guinea is gradually showing, and the spot circulation in the market is relatively tight at present, which has a positive impact on the market price of imported ore to a certain extent, resulting in a slight increase in the market price of imported ore this month without being affected by the sea freight. Among them, the mainstream ore market quotations in Guinea and Indonesia have exceeded US $70/ton.
On the supply side:
Affected by rainfall in the northern region, mining is affected to a certain extent, and spot circulation is reduced; the overall supply situation in the southern region has not changed much compared with the previous period, and there are still some enterprises consuming ore stocks in the factory.
Inventory:
This month, the immediate inventory of bauxite in the port has decreased again. Due to the fermentation of Indonesia's ban on bauxite export and the uncertainty of Guinea's political situation, the spot supply of imported ore has been reduced, and the market has implemented more overseas long-term agreements. However, alumina plants have actively made inquiries to purchase spot goods, resulting in the market price of imported bauxite still maintaining a relatively high position despite the recent drop in sea freight. The shortage of spot supply has also led to the immediate stock of bauxite in Chinese ports falling to its lowest level in the past two years.
On the whole, many parties in the market have a high degree of attention to ore, but the current price fear is still more obvious, resulting in a price increase this month, but the increase is relatively limited.
At the end of this month, the mainstream aluminumcontaining 60% in Shanxi region, and the price of domestic ore with an aluminum-silicon ratio of 5.0 grade is basically at a bare price of about 450 CNY/ton to the factory, which is the same as that at the end of last month and 4.65% higher than that at the beginning of the year. At the end of this month, the price of domestic ore with 5.0 grade aluminum-silicon ratio in Henan region is basically at a bare price of about 450 CNY/ton, up 4.65% from the price at the end of last month and flat from the beginning of the year; at the end of this month, the mainstream aluminum-containing 53% in Guangxi, and the domestic ore with a ratio of aluminum to silicon of 8.0 grade are basically
