In June 2025, bauxite prices slightly decreased. Significant import volumes in China was the main cause of this decline. The market also faced increasing inventories at alumina refineries and ports, as well as a continuous oversupply. Despite the fact that bauxite prices in Australia also decreased, producers like Rio Tinto and ABx are raising output in response to supply uncertainties worldwide. Bauxite demand is expected to increase in the second half of 2025 due to green energy projects and the expansion of infrastructure in emerging economies, according to projections.
Chinese bauxite (CFR) prices saw a slight dip in June 2025. This was primarily due to consistently high imports from major producing nations. Additionally, domestic aluminum production in China decreased by 3.23% month-over-month, with only minor changes in operating capacity.
Bauxite markets remain oversupplied. Data from June 2025 indicates persistent inventory accumulation across both port facilities and domestic alumina refineries. Alumina refineries experienced a 3.0% month-over-month and 8.7% year-over-year increase in their bauxite raw material inventories. Concurrently, total bauxite inventory at nine ports reached 23.35 million metric tons, an expansion of 1.79 million metric tons compared to May's end, and a substantial 9.37 million metric tons accumulation since January.
Despite high domestic bauxite arrivals in July, which will maintain a loose supply and contribute to inventory buildup, the market faces headwinds. The approaching rainy season in Guinea, coupled with persistent mining rights issues, is projected to reduce future bauxite shipments. With sellers reluctant to negotiate, bauxite prices are anticipated to fluctuate in the short term.
Australian bauxite prices also witnessed a 4.1% decrease, stemming from smooth supply chain and no disruption creating excess inventory for the market. Majority of plants maintained their production rates with few planned new expansions.
The Australian bauxite market is buzzing with activity, fueled by recent supply disruptions in Guinea and China that have sent prices soaring. Seizing this prime opportunity, Rio Tinto is expanding bauxite production at its Arum mine in Far North Queensland, Australia, on top of its existing 23 million tonnes per year. Similarly, ABx Group is strategically evolving beyond bauxite exploration into a diversified enterprise, focusing on bauxite mining, aluminum fluoride production, and rare earth recovery. They are aggressively advancing their bauxite projects in Tasmania, Queensland, and New South Wales, with the Tasmanian mine expected to be operational in 2025, subject to final planning approval.
Bauxite is set for a big boost in the second half of 2025. This is happening because more people want eco-friendly materials, new ways of making aluminum are emerging, and developing countries are building more infrastructure. Strict environmental rules and the worldwide shift to green energy mean bauxite is now seen as a vital building block for industries everywhere.
