Further crackdown on environmental rule-breaking plants in Shanxi have slashed calcined bauxite output, pushing prices\u00a0up over the past fortnight.<\/p>\n
Chinese calcined bauxite spot prices increased over the past fortnight as the already tight supply dwindled further amid\u00a0more governmental shutdown of production facilities.<\/p>\n
The Shanxi government announced 11 August that all plants that breached environmental standards in the refractory\u00a0minerals producing province will be closed by the end of September. This rule followed Tianjin\u2019s plan to relocate mineral\u00a0processing plants in the port city that was announced at the end of June.<\/p>\n
The two measures have brought further disruption to calcined bauxite production facilities. Combined with limited
\navailability of high-grade ore, output has been slashed.<\/p>\n
Although one Shanxi-based producer observed that there are still some plants operating secretly against the authority\u2019s\u00a0rule, overall production volume has declined sharply.<\/p>\n
Buyers in the market have encountered great difficulty in sourcing material over the past fortnight and many suppliers were\u00a0reluctant to provide quotes amid the uncertainty.<\/p>\n
\u00abThere is no stock in the country, so it\u2019s not possible to export,\u00bb one Tianjin-based trader told IM.<\/p>\n
\u00abI\u2019m not making any offer – it is pointless,\u00bb he added.<\/p>\n
A Europe-based trader agreed: \u00ab[It\u2019s] the same situation, [but] it\u2019s getting worse. The price is going up, there is no material.\u00bb<\/p>\n
All spot prices of refractory-grade bauxite on a FOB Xingang basis increased, according to IM\u2019s price assessment on 24\u00a0August.<\/p>\n
Spot prices for 85% refractory-grade bauxite (85% Al2O3\/2.0\/3.15-3.2\/0-6mm) increased to $370-390\/tonne FOB
\nXingang, up by an average of $15\/tonne from two weeks ago.<\/p>\n
86% bauxite also rose to $390-400\/tonne, up $10\/tonne compared to a fortnight ago.<\/p>\n
87% bauxite jumped to $400-450\/tonne, compared to $390-400\/tonne previously, while 88% was assessed at
\n$450-480\/tonne, up from $400-430\/tonne previously.<\/p>\n
Environmental restrictions to get worse<\/p>\n
At least two Chinese producers and one distributor believed that environmental inspections in Shanxi, Tianjin and Henan \u2013\u00a0provinces around Beijing – are likely to intensify in September and October ahead of a major sporting event (the National\u00a0games) being held in Henan and the 19th national congress of the Communist Party in the capital.<\/p>\n
One Europe-based distributor claimed that the authorities could close down most of the industries around Beijing, he told\u00a0IM.<\/p>\n
The government\u2019s crackdown on tax evasion further disrupted the market, said the Shanxi-based producer.<\/p>\n
\u00ab[There is] more uncertainty. It’s very difficult to know if deliveries are going to happen,\u00bb said one Europe-based distributor.<\/p>\n","protected":false},"excerpt":{"rendered":"
Further crackdown on environmental rule-breaking plants in Shanxi have slashed calcined bauxite output, pushing prices\u00a0up over the past fortnight. Chinese calcined bauxite spot prices increased over the past fortnight as the already tight supply dwindled further amid\u00a0more governmental shutdown of production facilities. The Shanxi government announced 11 August that all plants that breached environmental standards … <\/p>\n