Fluctuations in Market Value of Bauxite may Affect the Sentiments of Manufacturers Globally

As per the ChemAnalyst report, the global Bauxite prices remain firm due to the primary aluminium, which is mainly driven by its demand from downstream sectors such as construction, automotive, and electronics, which has pushed the consumption of Bauxite in the global region. Moreover, the different grade of Bauxite ore is available in the market, such as refractory grade, abrasive grade, and chemical grade, which are used according to their application requirements by the end-use industries.

In China, the price of Bauxite has increased by 4.2% during the first and second week of June, owing to the increasing demand from the alumina refineries. However, on entering the second half of the month, the price of Bauxite decreased as the alumina quotations kept falling in the last few days amid a strong bearish market. Moreover, new alumina production accelerated in North and South China, which has led to the abundant supply of Bauxite in the spot market. Even tightening cash flows compelled some alumina traders and refineries to dump their freight at lower prices. With an increase in the import prices and domestic prices, including the price of caustic soda from Guinea, China forced some of its manufacturers to reduce their production, which has lowered the price of Bauxite.

As per the ChemAnalyst database, it is observed that the price of Bauxite is stable during the first week of June in Guinea as it is the world’s largest exporter, and it has abundant supply in the global market. However, the Guinea government has recently endorsed some agreements for bauxite miners to present refinery plans. Bauxite mining companies in the domestic market were offered more than ten days by the Government to present a schedule for the establishment of alumina refineries, secondary to passing the deadline at the end of May that has already deceased. The due in the final judgment based on agreement by Government and action from the traders is keeping the market value of Bauxite stable.

As per the ChemAnalyst survey, it is expected that prices may get stable, or there will be a marginal fluctuation till the norms get settled in Guinea, which is the largest exporter of Bauxite worldwide.