Asian Metal News
Domestic bauxite inventory has dropped further on tightening supply after mines in Henan and Shanxi halted mining in response to stricter environmental requirements in place since early October. At present, bauxite with A/S 5.0 grade is being quoted at RMB 490/t and that with A/S 4.0 grade at RMB430/t. The prices are likely to remain stable until the end of this week and are expected to edge higher in early November.
One bauxite trader in Henan said they currently hold no stocks on tightening supply, in comparison to 10 kt stocks a month ago. They had sold 30 kt of bauxite with A/S 5.5 grade at RMB 490/t (delivered without taxes) to Shanxi. At present, the trader is holding firm on quotations at RMB 490/t and intends to lift the quotes by 20/t in early November.
One Shanxi bauxite trader reported no stocks at present. Last week, 2.5 kt of bauxite with A/S 4.3 grade was sold at RMB 430/t – the only transaction they concluded in October. Local bauxite supply has shrunk further, leaving no supply available in the market. The Shanxi trader is set to maintain their quotation at the current level for a week.
