Bauxite Raw Ore in Short Supply, Bauxite Price in Dilemma

October 10, 2019

Recently, due to the strict supervision of central environmental protection which greatly affects the mining of bauxite raw ore leading to the mining reduction and a short supply of raw ore, it is difficult for bauxite clinker manufacturers to purchase raw materials. Some traders or producers have raw ore stocks mostly for the second half year production. In addition, the raw ore price is high and tends to be rising, and the purchase of raw ore is basically prepaid or paid for with cash, so it needs a large amount of funds for traders or producers.

For downstream refractory products enterprises, it is difficult for suppliers to raise price due to the restriction of bidding price and repayment mode of steel mills. Therefore, as a refractory raw material, the bauxite clinker price rising resistance is greater.

Generally, under the situation of the stricter environmental protection, the bauxite price is in a dilemma, as the price of raw ore is further increasing, and the bauxite price of the downstream refractory enterprises cannot be adjusted in time, leading to the continually compression of the bauxite profits and the inhibition of the manufacturer production enthusiasm.