Asian Metal News
Chalco Zhongzhou is expected to consume 5 mln t of imported bauxite in 2019, making it the largest consumer of imported in Henan. Chalco Zhongzhou consumed 400 kt of imported bauxite in July, and its August consumption is expected to be the same. Indonesian bauxite accounts for approximately 70% of the company’s total bauxite consumption, with the remaining sourced from Guinea, Malaysia and Solomon Islands.
Chalco Zhongzhou began HT to LT conversion gradually since August 2018 and has completed conversion on its five alumina production lines mid-2019. At present, the company has 2.4 mtpy alumina capacity, capable of consuming 7 mln t of imported bauxite per annum. The company used 1.2 mln t of imported bauxite in 2018 and its consumption during the first seven months of 2019 was 3 mln t , with 600 kt of imported bauxite in inventory. It has been reported that using imported bauxite can reduce production costs by RMB 200/t for every tonne of alumina when compared with domestic bauxite.
At present, CIF prices of Indonesian bauxite at Al2O3 48% min, SiO2 10% max grade stand at USD45~46/t, up slightly by USD 1/t from end-July driven by a rebound in sea freight costs.