Malaysia bauxite mining ban may be extended further

Malaysian ban on bauxite mining may be extended. CBIX was down 1.1% (US$0.5) over the week, finishing at US$47.1/dmt, as lower prices from non-Malaysian suppliers continued their trend lower.

Sentiment from Malaysia suggests authorities are likely to take a hard line approach to ensuring bauxite miners meet environmental standards. Given the improvements necessary to meet the standards by most of the miners (lead times on equipment purchase, installation etc), it may take longer to achieve than the three-month duration of the current ban. Some industry insiders are now suggesting the ban may be extended to five months (from three). Miners and exporters are currently clearing stockpiles and planning for the necessary process upgrades.

Despite the turmoil, Malaysian bauxite prices were unchanged over the week, with unwashed bauxite at US$26.0/dmt FOB. The calculated CFR price (ViU adjusted) fell marginally, by 0.8% (US$0.3/dmt), to US$35.1/dmt, due to changes in freight rates.

Chinese domestic alumina prices continued to firm ahead of the Chinese New Year, with the North China domestic alumina price up 1.2% (RMB19/t) to RMB1,637/t (US$249/t including VAT), with the south unchanged on RMB1,535/t (US$233/t including VAT).

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.