Bauxite prices in Shanxi province have risen from March. Supplies remained tight as the government clamped down on illegal mining, we learned.
High- and low-grade bauxite across the region rose by 40 yuan/mt and renewed their record high prices this month. As of Monday July 9, resources with a aluminium/silicon ratio at 6-7 stood at 495 yuan/mt with those at 4.5-5.5 standing at 415 yuan/mt, excluding value-added tax or resource tax. The prices came in at 626 yuan/mt and 525 yuan/mt, including tax, respectively.
From March 1, the Shanxi government began its clampdown on illegal mining to protect ore resources. This is expected to last until October.
Inspectors from the central government will settle in Shanxi this month for about a month, and will target open pit mining. This is set to further weigh on bauxite supply across the region and prices are likely to extend their gains.
Bauxite prices gained 20 yuan/mt in Henan province in July, just 35 yuan/mt shy of the record high of 490 yuan/mt.
Bauxite supply in Henan is also expected to tighten as regulations on bauxite mines across the region would intensify this month. The stricter regulations come after rectification works at those mines came under fire during probes by the central government in June. Captive mines at some alumina refineries in Henan have been shut, we learned.
Some alumina refineries in the two provinces were heard to have purchased bauxite from Guizhou province.