Indonesian bauxite export policy to push up bauxite price
2012-02-23 09:27:44 [Print]
BEIJING (Asian Metal) 23 Feb 12 – Relevant official from Indonesia declared that they would stop bauxite export from 2014. Although Indonesia issued the policy before, the reaffirm for the policy may push up bauxite price in the coming two years.
A Hong Kong-based trader reported that they now offer USD28/t FOB Indonesia for bauxite with Al45-46% Si8-10%, unchanged for several months. “We mainly fulfill contracts signed before, so it’s hard for us to raise offers,” said the source. However, he noted that bauxite suppliers from Indonesia may raise offer to USD29/t at least in the long run, because of the export ban policy.
The trader offered USD26/t for bauxite with Al45-46% Si14-15%. “The freight from Indonesia to Longkou of China is around USD10-13/t,” said the source, who mainly sells bauxite to three major alumina producers in Shandong and concludes around 130,000tpm.
In addition, the source noted that the bauxite export ban policy may not influence Chinese alumina producers greatly, as they can find new resources within two years. However, the alumina production cost will go up.
Another trader from Shandong confirmed that the bauxite price may go up by around USD1/t because of the export ban policy. “We now offer USD26/t for bauxite with Al46% Si14-15%, the same as that before,” said the source, noting that they sell around 100,000t of the material each month.
“In order to increase bauxite export before 2014, suppliers from Indonesia may not raise offer greatly,” said the source, who also mainly conclude deals in Shandong province.
A Hong Kong-based trader reported that they now offer USD28/t FOB Indonesia for bauxite with Al45-46% Si8-10%, unchanged for several months. “We mainly fulfill contracts signed before, so it’s hard for us to raise offers,” said the source. However, he noted that bauxite suppliers from Indonesia may raise offer to USD29/t at least in the long run, because of the export ban policy.
The trader offered USD26/t for bauxite with Al45-46% Si14-15%. “The freight from Indonesia to Longkou of China is around USD10-13/t,” said the source, who mainly sells bauxite to three major alumina producers in Shandong and concludes around 130,000tpm.
In addition, the source noted that the bauxite export ban policy may not influence Chinese alumina producers greatly, as they can find new resources within two years. However, the alumina production cost will go up.
Another trader from Shandong confirmed that the bauxite price may go up by around USD1/t because of the export ban policy. “We now offer USD26/t for bauxite with Al46% Si14-15%, the same as that before,” said the source, noting that they sell around 100,000t of the material each month.
“In order to increase bauxite export before 2014, suppliers from Indonesia may not raise offer greatly,” said the source, who also mainly conclude deals in Shandong province.
Alumina 98.5%min FOB Australia
Unit:USD/mt
China alumina producers' inventory to production ratio statistics by province by month
Unit: %
