Indonesia bauxite export ban seems hard to push up Chinese alumina market
2012-05-16 08:58:12 [Print]
BEIJING (Asian Metal) 16 May 12 – In spite of the Indonesian bauxite export ban from May 6, Chinese alumina market seemed hard to move up shortly due to sluggish aluminum ingot market. Most alumina producers, who hold few stocks on hand, have no intention of increasing offers in a short time.
A Shanxi-based alumina producer reported that they still offer RMB2,720/t ex works for the material, the same as that one week ago. “Although Chinese bauxite cost is likely to go up, because of Indonesian bauxite export ban, alumina price lacks movement to increase,” said the source, who explained that aluminum ingot price kept going down in the past two days.
In addition, the source noted that they mainly fulfill long-term contracts and hold around 20,000t of stocks on hand.
The plant is running fully at the capacity of 2.8 million tons per year.
Another alumina producer from Henan confirmed that they maintained offer of RMB2,750/t ex works. “Part deals have been concluded at the offer,” said the source, indicating that most deals were concluded below the offer.
As for the market trend, the source believed that it is hard for the alumina price to go up soon, as aluminum ingot market remains weak. In view of the unfavorable bank news from American, aluminum ingot price did not go up in the past two days, although China lowered the deposit-reserve ratio.
The plant is running fully at the capacity of 800,000tpy and holds no stock on hand.
A Shanxi-based alumina producer reported that they still offer RMB2,720/t ex works for the material, the same as that one week ago. “Although Chinese bauxite cost is likely to go up, because of Indonesian bauxite export ban, alumina price lacks movement to increase,” said the source, who explained that aluminum ingot price kept going down in the past two days.
In addition, the source noted that they mainly fulfill long-term contracts and hold around 20,000t of stocks on hand.
The plant is running fully at the capacity of 2.8 million tons per year.
Another alumina producer from Henan confirmed that they maintained offer of RMB2,750/t ex works. “Part deals have been concluded at the offer,” said the source, indicating that most deals were concluded below the offer.
As for the market trend, the source believed that it is hard for the alumina price to go up soon, as aluminum ingot market remains weak. In view of the unfavorable bank news from American, aluminum ingot price did not go up in the past two days, although China lowered the deposit-reserve ratio.
The plant is running fully at the capacity of 800,000tpy and holds no stock on hand.
Caustic Soda 32%min Delivered China
Unit:RMB/mt 100-basis
China alumina producers' inventory statistics by province by month
Unit: mt
